Which of the following statements is most correct concerning audit risk?
A) Audit risk can be quantified with a reasonable degree of certainty.
B) Audit risk cannot be quantified with certainty.
C) Audit risk is the same for all audit client in the same industry.
D) Audit risk can be eliminated by having the correct audit procedures.

Question

Quizplus · Accepted Answer

Audit risk is inherent in the auditing process and cannot be completely eliminated or quantified with certainty. It is always present, and the auditor's goal is to reduce it to an acceptable level through appropriate audit procedures. Audit risk also varies depending on the nature of the client's business, the level of judgment involved, and other factors. Therefore, statement A, C, and D are not correct.

Which of the Following Statements Is Most Correct Concerning Audit