Which of the following best describes the concept of audit risk?
A)The risk of the auditor being sued because of association with an auditee.
B)The risk that the auditor will provide a "clean" opinion on financial statements that are, in fact, materially misstated.
C)The overall risk that a material misstatement exists in the financial statements.
D)The risk that auditors use audit procedures that are inappropriate.

Question

Quizplus · Accepted Answer

Audit risk refers to the risk that an auditor may issue an unqualified opinion on financial statements that actually contain a material misstatement. This risk is inherent to the audit process, as auditors rely on sampling and other procedures that can only provide reasonable assurance, not absolute certainty, regarding the accuracy of financial statements.

Which of the Following Best Describes the Concept of Audit