Residual Risk Is Defined as

Residual risk is defined as

A) susceptibility of a transaction or accounting adjustment to be recorded in error,or for the transaction not to be recorded in the absence of internal controls.
B) the risk that the client's internal controls system will fail to prevent or detect a misstatement.
C) the risk left in an account balance after application of internal controls.
D) risk that the audit procedures will fail to detect a material misstatement.