Which of the following terms best describes the increased likelihood that unreliable information will be provided to decision makers?
A)audit risk
B)information risk
C)inherent risk
D)business risk

Question

Quizplus · Accepted Answer

Information risk refers to the possibility that unreliable or inaccurate information may be used in decision making. This can occur due to errors or omissions in data, inadequate controls or safeguards over information, or intentional deception by parties providing the information. Auditors may consider information risk in assessing the overall risk of material misstatement in financial statements. Inherent risk refers to the risk of material misstatement in the absence of controls or mitigation factors, while business risk refers to the risk of loss or failure due to external factors such as competition, economic conditions, or changes in technology.

Which of the Following Terms Best Describes the Increased Likelihood