________ risk represents the possibility that the auditor concludes after conducting an adequate audit that the financial statements were fairly stated when they were actually misstated.

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 is a risk that the auditor will conclude that the financial statements are fair when they actually contain material misstatements.

________ Risk Represents the Possibility That the Auditor Concludes After