Which is a True statement about audit risk?
A)Audit risk measures the risk that a material misstatement could occur and not be detected by internal control.
B)When auditors decide on a higher acceptable audit risk,they want to be more certain that the financial statements are not materially misstated.
C)Audit assurance is the complement of acceptable audit risk.
D)There is an inverse relationship between acceptable audit risk and planned detection risk.

Question

Quizplus · Accepted Answer

Audit assurance is indeed the complement of acceptable audit risk, meaning if acceptable audit risk is 5%, audit assurance is 95%.

Which Is a True Statement About Audit Risk