It refers to the risks that a material misstatement will even occur, that it would not be prevented or detected by client internal controls, and that is not detected by the auditor’s own procedures. a. Inherent risk b. Control risk c. Detection risk d. Audit risk
It refers to the risks that a material misstatement will even occur, that it would not be prevented or detected by client internal controls, and that is not detected by the auditor’s own procedures. a. Inherent risk b. Control risk c. Detection risk d. Audit risk
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter7: Planning The Audit: Identifying, And Responding To The Risk Of Material Misstatement
Section: Chapter Questions
Problem 18MCQ
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It refers to the risks that a material misstatement will even occur, that it would not be prevented or
detected by client internal controls, and that is not detected by the auditor’s own procedures.
a. Inherent risk
b. Control risk
c. Detection risk
d. Audit risk
Audit risk and materiality are considered at the level of
a. Overall financial statements.
b. Assertions relating to individual account balance, class of transactions, or disclosure.
c. Both a and b.
d. Neither a nor b.
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