What Is Audit Risk

question 66

Multiple Choice

What is audit risk?

• A)the risk that an auditor expresses an inappropriate audit opinion when the financial statements are materially misstated
• B)the risk that an auditor expresses an objectionable audit opinion when the financial statements are materially misstated
• C)the risk that an auditor expresses an adverse opinion when the financial statements are materially misstated
• D)the risk that an auditor expresses an incompatible audit opinion when the financial statements are materially misstated

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Definitions:

Continuum

A continuous sequence in which adjacent elements do not vary significantly from each other but the extremes are quite distinct.

Corrective Feedback

Informative feedback provided with the intent of improving performance by identifying mistakes and suggesting improvements.

Supportive Feedback

Constructive feedback provided in a manner that encourages growth and improvement, emphasizing positive aspects while offering suggestions for development.

Dialogue

entails a conversational exchange of ideas or opinions between two or more individuals aimed at reaching understanding, resolution, or agreement.