A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the
A) inherent risk.
B) audit risk.
C) statistical risk.
D) financial risk.

Question

Quizplus · Accepted Answer

The measure described in the question is the audit risk. Audit risk is the risk the auditor is willing to take that the financial statements contain material misstatements after issuing an unqualified opinion. Inherent risk refers to the risk that exists in the absence of any controls, while statistical risk is not a commonly used term in auditing. Financial risk relates to the creditworthiness of a company and is not relevant to this question.

A Measure of How Willing the Auditor Is to Accept