In What Way Does the Risk of Material Misstatement Differ

question 49

Multiple Choice

In what way does the risk of material misstatement differ from detection risk?

• A)Risk of material misstatement arises because audit procedures have been misapplied.
• B)Risk of material misstatement can be controlled and changed by the auditor.
• C)Risk of material misstatement can be assessed in quantitative and non-quantitative terms.
• D)Risk of material misstatement is controllable by the client.

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Definitions:

Combine

To combine is to join or merge two or more elements into a single unit or group.

Simplify

The process of altering an expression into its most basic form or notation.

Combine

The act of merging elements in various contexts, especially in algebra where terms are added or multiplied.