The risk of material misstatement differs from detection risk in that it:
A)arises from the misapplication of audit procedures.
B)may be assessed in either quantitative or non-quantitative terms.
C)exists independently of the financial statement audit.
D)can be changed at the auditor's discretion.

Question

Quizplus · Accepted Answer

Risk of material misstatement exists independently of the financial statement audit, as it is inherent in the financial statements and the entity's environment, whereas detection risk is related to the auditor's procedures.

The Risk of Material Misstatement Differs from Detection Risk in That