Which of the following best describes the concept of audit risk?
A)The risk of the auditor being sued because of association with an audit client.
B)The risk that the auditor will provide an unmodified opinion on a materially misstated financial report.
C)The overall risk that a material misstatement exists in the financial report.
D)The risk that auditors use audit procedures that are inappropriate.

Question

Quizplus · Accepted Answer

Audit risk is the risk that the auditor expresses an unmodified (clean) opinion on the financial statements when, in fact, there is a material misstatement present. This risk encompasses the possibility of not detecting errors or frauds that could impact the financial statements significantly.

Which of the Following Best Describes the Concept of Audit