What is the nature of the relationship between risk of material misstatement and audit risk?
A)Direct.
B)None.
C)Correlational.
D)Inverse.

Name: What is the nature of the relationship between risk of material misstatement and audit risk? A)Direct. B)None. C)Correlational. D)Inverse.
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Question

Quizplus · Accepted Answer

The relationship between the risk of material misstatement and audit risk is inverse. As the risk of material misstatement increases, the auditor needs to reduce audit risk by performing more extensive audit procedures.

What Is the Nature of the Relationship Between Risk of Material