In an audit situation, which of the following risks can be reduced to zero?
A)Detection risk and inherent risk, but not control risk
B)Inherent risk, control risk, and detection risk
C)Control risk and detection risk, but not inherent risk
D)Neither detection risk, inherent risk, nor control risk.

Question

Quizplus · Accepted Answer

Inherent risk, control risk, and detection risk are fundamental components of audit risk. Inherent risk and control risk are related to the client and their environment, and cannot be changed by the auditor. Detection risk is the risk that the auditor fails to detect a material misstatement, which can be managed but not reduced to zero due to limitations in audit procedures and the nature of audit evidence.

In an Audit Situation, Which of the Following Risks Can