Which of the following statements is about audit risk?
A) It is impossible to completely eliminate audit risk
B) Audit risk is the risk that an auditor expresses an inappropriate opinion when a financial report is materially stated
C) Audit risk can be reduced at the planning stage of an audit by identifying the key risks faced by the client
D) All of the above

Question

Quizplus · Accepted Answer

Option A is correct because audit risk cannot be completely eliminated due to the inherent limitations of any audit. Option B is correct because audit risk is defined as the risk that an auditor expresses an inappropriate opinion when a financial report is materially misstated. Option C is correct because audit risk can be reduced by identifying key risks and developing appropriate audit procedures during the planning stage of an audit. Therefore, option D is the correct choice.

Which of the Following Statements Is About Audit Risk