The achieved (actual)level of audit risk:
A)can always be accurately assessed by the auditor.
B)should be greater than or equal to acceptable audit risk.
C)can never be known with certainty.
D)is the same for all audit engagements.

Question

Quizplus · Accepted Answer

The achieved level of audit risk can never be known with certainty, as it involves factors that are outside of the auditor's control such as the possibility of fraud or misstatements not being detected. The auditor can only estimate the level of audit risk based on their professional judgment and the results of their audit procedures. Therefore, option C is the correct answer. Options A, B, and D are incorrect since the achieved level of audit risk cannot always be accurately assessed by the auditor (option A), should be less than or equal to acceptable audit risk (option B), and varies depending on the nature and complexity of each audit engagement (option D).

The Achieved (Actual)level of Audit Risk