What is audit risk?
A) Internal and external risk factors that exist when there are no controls implemented.
B) The amount of risk that is reduced through risk management operations.
C) An incorrect conclusion based on evidence uncovered during an audit.
D) The risk that remains after management has executed risk management activities.

Question

Quizplus · Accepted Answer

Audit risk is the risk that an auditor may reach an incorrect conclusion based on the evidence gathered during an audit, leading to an inappropriate audit opinion.

What Is Audit Risk