The possibility that fraud has resulted in intentional misstatement in the financial statements is known as
A)acceptable audit risk.
B)detection risk.
C)control risk.
D)fraud risk.

Question

Quizplus · Accepted Answer

Fraud risk refers to the risk that material misstatement in the financial statements is a result of intentional deceitful action by management, employees, or third parties. Acceptable audit risk is the level of risk that the auditor is willing to accept that the financial statements may be misstated after the audit is completed. Detection risk is the risk that the auditor will not detect material misstatements in the financial statements. Control risk is the risk that a material misstatement will not be prevented or detected on a timely basis by the entity's internal controls.

The Possibility That Fraud Has Resulted in Intentional Misstatement in the Financial