When classifying risks, significant consideration is not given to whether the risk
A) is related to significant economic or accounting developments.
B) involves simple transactions.
C) involves significant related party transactions.
D) involves fraud.

Question

Quizplus · Accepted Answer

When classifying risks, significant consideration is typically given to factors that could significantly impact the financial statements or involve complex judgments, such as significant economic or accounting developments, significant related party transactions, and fraud. Simple transactions, by contrast, are less likely to be areas of significant risk because they are more straightforward and less likely to involve complex judgments or estimations.

When Classifying Risks, Significant Consideration Is Not Given to Whether