The risk of material misstatement includes which of the following?
A)Detection risk
B)Audit risk
C)Inherent risk
D)Nonsampling risk

Question

Quizplus · Accepted Answer

The risk of material misstatement includes inherent risk, which refers to the susceptibility of an assertion to a material misstatement, regardless of whether the auditor identifies any control deficiencies or potential misstatements. Detection risk, audit risk, and nonsampling risk are not components of the risk of material misstatement.

The Risk of Material Misstatement Includes Which of the Following