The Risk That an Auditor Will Conclude, Based on Substantive

question 10

Multiple Choice

The risk that an auditor will conclude, based on substantive tests, that a material error does not exist in an account balance when, in fact, such error does exist is referred to as:

• A) sampling risk.
• B) detection risk.
• C) non-sampling risk.
• D) inherent risk.

---

Definitions:

Fairness

The quality of making judgments that are free from discrimination or bias, ensuring equal treatment for all.

Defining Justice

The act of determining what is morally right, fair, and equitable within a society, often involving the application of laws and ethical principles.

Basic Benefit

Fundamental or essential advantages provided typically by governments or organizations, such as health care or social security.