Which of the following terms best describes the risk that audit procedures will fail to detect material misstatements?
A)Audit risk.
B)Control risk.
C)Detection risk.
D)Inherent risk.

Question

Quizplus · Accepted Answer

Detection risk refers to the risk that audit procedures will fail to detect material misstatements. Audit risk is the overall risk that an auditor may issue an incorrect opinion, and is composed of inherent risk, control risk, and detection risk. Inherent risk refers to the risk of material misstatement existing in an assertion, while control risk relates to the risk that a material misstatement will not be prevented or detected by internal control.

Which of the Following Terms Best Describes the Risk That