The risk that the auditor may unknowingly fail to appropriately modify his or her opinion on financial statements that are materially misstated is:
A) analytical procedures risk.
B) control risk.
C) tests of details risk.
D) inherent risk.
E) audit risk.

Question

Quizplus · Accepted Answer

Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. It encompasses inherent risk, control risk, and detection risk, but it is the overall risk of reaching an incorrect conclusion in the audit.

The Risk That the Auditor May Unknowingly Fail to Appropriately