________ is the risk that the auditor or audit firm will suffer harm after the audit is finished, even though the audit report was correct.
A) Inherent risk
B) Audit risk
C) Engagement risk
D) Control risk

Question

Quizplus · Accepted Answer

Engagement risk refers to the risk that the auditor or audit firm could suffer harm to its reputation or financial well-being as a result of its association with the audit engagement, even though the audit report was correct. This could happen, for example, if the audit client is involved in a scandal or experiences financial difficulties after the audit. It is a type of audit risk, but distinct from inherent risk and control risk.

________ Is the Risk That the Auditor or Audit Firm