Final answer:
The primary risk of material misstatement for contingent liabilities related to financial statement disclosures is completeness. This risk involves the failure to identify and disclose all potential liabilities, which can lead to material misstatements.
Step-by-step explanation:
When Russell CPA is auditing contingent liabilities, the primary risk of material misstatement related to financial statement disclosures is generally c. Completeness. Contingent liabilities are potential liabilities that may occur depending on the outcome of an uncertain future event. The risk is that not all contingent liabilities are recorded or disclosed in the financial statements, which can lead to material misstatements. Auditors need to ensure that all existing and possible obligations that may become liabilities are identified and appropriately disclosed in accordance with accounting standards.