A ________ risk represents an identified and assessed risk of material misstatement that, in the auditor's professional judgment, requires special audit consideration.
A) material
B) substantial
C) financial statement
D) significant

Question

Quizplus · Accepted Answer

The term "significant" is commonly used in auditing to describe a risk that requires special audit consideration. Materiality is a threshold used to determine the financial statement impact of misstatements, but it does not necessarily indicate the level of audit attention required. Substantial is a synonym for significant but is not typically used in this context. Financial statement is too broad of a term and does not specifically refer to a risk that requires special audit consideration.

A ________ Risk Represents an Identified and Assessed Risk of Material