The risk of material misstatement differs from detection risk in that it:
A) arises because audit procedures have been misapplied.
B) can be controlled and changed by the auditor.
C) can be assessed in quantitative and non-quantitative terms.
D) is controllable by the client.

Question

Quizplus · Accepted Answer

The risk of material misstatement is controllable by the client because it arises from factors within the client's control, such as the effectiveness of the client's internal controls.

The Risk of Material Misstatement Differs from Detection Risk in That