The Risk That an Auditor's Procedures Will Lead to the Conclusion

question 61

Multiple Choice

The risk that an auditor's procedures will lead to the conclusion that a material misstatement does not exist in an account balance when, in fact, such a misstatement does exist is:

• A)audit risk.
• B)detection risk.
• C)control risk.
• D)inherent risk

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Definitions:

Basic

Fundamental, essential qualities or elements, typically serving as the foundation for more complex systems or knowledge.

Inanimate "Substitute" Mothers

A term referring to surrogate non-living objects used to provide comfort or fulfill the role of a mother in animal behavior studies.

Terry Cloth

A fabric with loops that can absorb large amounts of water; commonly used for towels and bathrobes.

Wire

A slender, flexible strand or rod of metal used to bear mechanical loads or electricity and telecommunication signals.