Risk of material misstatement at the assertion level

determines the nature, timing, and extent of further audit procedures.

refers to risks that are pervasive to the financial statements as a whole.

is only relevant to account balances.

consists of business risk and inherent risk.

Fictitious revenues

		increase accounts receivable turnover.
		lower accounts receivable turnover.
		have no impact on the gross margin percentage.
		understate the gross margin percentage.