The risk of material misstatement,without regard to the effects of controls,is:
A)An inherent risk
B)A control risk
C)A detection risk
D)An incontrollable risk

Question

Quizplus · Accepted Answer

The risk of material misstatement that exists in the absence of any internal controls is considered an inherent risk. It refers to the risk of material misstatement in the financial statements regardless of whether the auditor identifies relevant controls that relate to the risk, and whether those controls have been tested or relied upon.

The Risk of Material Misstatement,without Regard to the Effects of Controls,is