________ is the risk that the financial statements contain a material misstatement due to fraud or error prior to the audit.
A) Inherent risk
B) Client business risk
C) Acceptable audit risk
D) Risk of material misstatement

Question

Quizplus · Accepted Answer

The risk that the financial statements contain a material misstatement due to fraud or error prior to the audit is called the Risk of Material Misstatement. Inherent risk, client business risk, and acceptable audit risk are all factors that auditors consider when assessing the risk of material misstatement.

________ Is the Risk That the Financial Statements Contain a Material