Which of the following is a source of detection risk?
A)Unstable business environment.
B)Poor client controls.
C)A nonrepresentative sample.
D)Inherent risk assessed too high.

Question

Quizplus · Accepted Answer

Detection risk arises when auditors fail to detect material misstatements in the financial statements. A nonrepresentative sample can lead to detection risk because it might not accurately reflect the true nature of the financial data or transactions being audited.

Which of the Following Is a Source of Detection Risk