The assessment of inherent risk requires consideration of matters that have a pervasive effect on the entity as a whole and matters that may affect only specific accounts.Which of the following is an example of a "pervasive effect" matter?
A)Industry of operation.
B)Susceptibility to misappropriation.
C)Sensitivity of valuations to economic factors.
D)All of the above.

Question

Quizplus · Accepted Answer

All of the listed matters can have a pervasive effect on the entity as a whole.

The Assessment of Inherent Risk Requires Consideration of Matters That