Which Is a True Statement About Audit Risk

question 7

Multiple Choice

Which is a True statement about audit risk?

• A)Audit risk measures the risk that a material misstatement could occur and not be detected by internal control.
• B)When auditors decide on a higher acceptable audit risk,they want to be more certain that the financial statements are not materially misstated.
• C)Audit assurance is the complement of acceptable audit risk.
• D)There is an inverse relationship between acceptable audit risk and planned detection risk.

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