Audit is the risk that auditing procedures will not detect a material misstatement.

Name: Audit is the risk that auditing procedures will not detect a material misstatement.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Audit risk is the risk that the auditor may unknowingly fail to appropriately modify their opinion on financial statements that are materially misstated. The risk that auditing procedures will not detect a material misstatement is specifically known as "detection risk," which is a component of audit risk.

Audit Is the Risk That Auditing Procedures Will Not Detect