The likelihood that material misstatements may have entered the accounting system and not been detected and corrected by the client's internal control is referred to as
A) Inherent risk.
B) Control risk.
C) Detection risk.
D) Risk of material misstatement.

Question

Quizplus · Accepted Answer

Detection risk is the risk that an audit procedure will not detect a misstatement that exists in an account balance or class of transactions.

The Likelihood That Material Misstatements May Have Entered the Accounting