Which of the following factors influence the risk of material misstatement?
A) The business risks.
B) Management incentives.
C) IT risks.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the above factors can influence the risk of material misstatement. Business risks refer to factors such as changes in the industry or economic factors that may impact the accuracy of financial statements. Management incentives may influence the manipulation of financial statements for personal gain. IT risks refer to the potential for errors or fraud in computer systems and processes. Therefore, all of these factors should be considered when assessing the risk of material misstatement.

Which of the Following Factors Influence the Risk of Material