The difference between what was reported and what should have been reported,an auditor's traditional perspective of misstatement,is the basis of the concept of auditing risk.

Question

Quizplus · Accepted Answer

Auditing risk refers to the risk that an auditor may unknowingly fail to appropriately modify their opinion on financial statements that are materially misstated. The concept of misstatement is related to the accuracy of financial statements, but auditing risk encompasses the broader risk of not detecting such inaccuracies.

The Difference Between What Was Reported and What Should Have