Preliminary risk identification can be affected by:
A) fraud risk.
B) corporate governance.
C) Both a and b
D) None of the above.

Question

Quizplus · Accepted Answer

Preliminary risk identification can be affected by both fraud risk and corporate governance. Fraud risk can be a factor in identifying risks because it can lead to misstatements in financial reporting, and it can also impact the accuracy of non-financial data. Corporate governance can also impact preliminary risk identification because it can influence the culture and tone of an organization, which in turn affects risk appetite and risk management practices. Therefore, both options A and B are valid factors that can affect preliminary risk identification.

Preliminary Risk Identification Can Be Affected By