Auditors frequently refer to the terms audit assurance, overall assurance, and level of assurance instead of
A) detection risk.
B) audit report risk.
C) acceptable audit risk.
D) inherent risk.

Question

Quizplus · Accepted Answer

The terms audit assurance, overall assurance, and level of assurance all refer to the level of acceptable audit risk. Acceptable audit risk is the risk that the auditor is willing to accept that the financial statements may be materially misstated after conducting an audit. Therefore, option C is the correct answer. Detection risk refers to the risk that the auditor's procedures will not detect misstatements, inherent risk is the susceptibility of an assertion to a material misstatement without considering the internal control, and audit report risk is the risk of issuing an incorrect opinion based on the audit evidence.

Auditors Frequently Refer to the Terms Audit Assurance, Overall Assurance