The risk that an auditor's procedures will lead to the conclusion that a material misstatement does not exist in an account balance when, in fact, such misstatement actually exists is:
A)audit risk.
B)inherent risk.
C)control risk.
D)detection risk.

Question

Quizplus · Accepted Answer

This scenario is an example of detection risk, which is the risk that the auditor's procedures will not detect a material misstatement in an account balance. Detection risk can be controlled by adjusting the nature, timing, and extent of audit procedures.

The Risk That an Auditor's Procedures Will Lead to the Conclusion