Client risk as defined in the text is
A) The auditor's risk of loss from events arising in connection with financial statements audited and reported upon.
B) The overall risk of material misstatement.
C) The risk that audit procedures will fail to detect material misstatements.
D) The risk of the entity's financial failure.

Question

Quizplus · Accepted Answer

The overall risk of material misstatement is the risk that the financial statements are materially misstated, whether due to error or fraud.

Client Risk as Defined in the Text Is