What is the risk that an auditor expresses an inappropriate audit opinion when the financial statements are materially misstated?
A)Audit risk
B)Risk response
C)Risk assessment
D)Risk reporting

Question

Quizplus · Accepted Answer

This is an example of audit risk, which is the risk that the auditor expresses an inappropriate opinion when the financial statements are materially misstated. This risk arises from factors such as the possibility of errors in the financial statements, limitations in the scope of the audit, and the possibility of fraud or other intentional wrongdoing. The auditor must assess and manage this risk in order to provide a high-quality audit opinion.

What Is the Risk That an Auditor Expresses an Inappropriate