Audit risk is the risk that the auditor may give an unqualified opinion on financial statements that are materially misstated.

Question

Quizplus · Accepted Answer

Audit risk is defined as the risk that the auditor may unknowingly fail to modify their opinion on the financial statements that are materially misstated. If an auditor gives an unqualified opinion on such financial statements, it can have significant implications for the users of those financial statements. Therefore, the auditor must assess and manage audit risk appropriately during the audit process.

Audit Risk Is the Risk That the Auditor May Give