The audit risk model includes the four risks listed below. Match the type of risk with the related definition. A. Detection risk B. Control risk C. Inherent risk D. Audit risk ___ 1. The probability that an auditor will give an inappropriate opinion on financial statements. ___ 2. The probability that audit procedures will fail to produce evidence of material misstatements. ___ 3. The probability that the client's internal control policies and procedures will fail to detect material misstatements if they have entered the accounting system. ___ 4. The probability that material misstatements have occurred in
The audit risk model includes the four risks listed below. Match the type of risk with the related definition. A. Detection risk B. Control risk C. Inherent risk D. Audit risk ___ 1. The probability that an auditor will give an inappropriate opinion on financial statements. ___ 2. The probability that audit procedures will fail to produce evidence of material misstatements. ___ 3. The probability that the client's internal control policies and procedures will fail to detect material misstatements if they have entered the accounting system. ___ 4. The probability that material misstatements have occurred in
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter9: Auditing The Revenue Cycle.
Section: Chapter Questions
Problem 17RQSC
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Question
The audit risk model includes the four risks listed below. Match the type of risk with the related
definition.
A. Detection risk
B. Control risk
C. Inherent risk
D. Audit risk
___ 1. The probability that an auditor will give an inappropriate
opinion on financial statements.
___ 2. The probability that
evidence of material misstatements.
___ 3. The probability that the client's internal control policies
and procedures will fail to detect material misstatements if
they have entered the accounting system.
___ 4. The probability that material misstatements have occurred in
transactions entering the accounting system.
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