Manny Regimbald is concerned about the audit of a high risk client, the Lewiston Stampeders. He believes that there is a high likelihood that because his audit team is
Inexperienced that the testing procedures will not detect a material misstatement. This is a(n)
A) audit risk.
B) control risk.
C) detection risk.
D) none of the above.

Question

Quizplus · Accepted Answer

Manny's concern about the testing procedures not detecting a material misstatement due to the audit team's inexperience relates to detection risk. Detection risk is the risk of the audit procedures failing to detect a material misstatement. It is one of the three components of audit risk, which also includes inherent risk and control risk. Therefore, choice C is the correct answer.

Manny Regimbald Is Concerned About the Audit of a High