Which of the Following Best Describes the Concept of Audit

question 52

Multiple Choice

Which of the following best describes the concept of audit risk?

• A)The risk of the auditor being sued because of association with an audit client.
• B)The risk that the auditor will provide an unmodified opinion on a materially misstated financial report.
• C)The overall risk that a material misstatement exists in the financial report.
• D)The risk that auditors use audit procedures that are inappropriate.

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Definitions:

Mandatory

Refers to something required or obligatory by law or rule.

Permissive

Characterized by or allowing a lot of freedom and flexibility; not strict in the imposition of rules.

National Emergency

A state of emergency declared by a government in response to a significant threat to the country, which may alter regular operations and liberties temporarily.

Strike Procedures

The policies and steps legally required to be followed by a union or employees when organizing and executing a strike action.