The risk of material misstatement differs from detection risk in that it
A) Arises from the misapplication of audit procedures.
B) May be assessed in either quantitative or nonquantitative terms.
C) Exists independently of the financial statement audit.
D) Can be changed at the auditor's discretion.

Question

Quizplus · Accepted Answer

Risk of material misstatement exists independently of the financial statement audit, as it pertains to the inherent and control risks present in the financial statements before the auditor's procedures are applied.

The Risk of Material Misstatement Differs from Detection Risk in That