Inherent risk and control risk differ from detection risk in that they:
A)arise from the misapplication of auditing procedures.
B)may be assessed in either quantitative or non-quantitative terms.
C)exist independently of the financial report audit.
D)can be changed at the auditor's discretion.

Question

Quizplus · Accepted Answer

Inherent risk and control risk are risks that exist independently of the financial report audit, meaning they are inherent in the nature of the business and its controls. On the other hand, detection risk arises from the misapplication of auditing procedures, which can be controlled by the auditor. Therefore, choice C is the correct answer. Choices A, B, and D are incorrect because they do not accurately describe the difference between inherent risk and control risk and detection risk.

Inherent Risk and Control Risk Differ from Detection Risk in That