The Risk of Material Misstatement Differs from Detection Risk in That

question 46

Multiple Choice

The risk of material misstatement differs from detection risk in that it

• A) Arises from the misapplication of auditing procedures.
• B) May be assessed in either quantitative or qualitative terms.
• C) Exists independently of the actions of the auditor.
• D) Can be changed at the auditor's discretion.

---

Definitions:

Body Language

Non-verbal communication through body movements, gestures, and facial expressions.

Interference

Disturbance or obstruction of processes, signals, or activities, often leading to a decrease in performance or quality.

Negative Communication

Exchange of information laden with negative emotions, misunderstandings, or conflicts.

Feedback

Information provided as a response to an action or process, used for improvement and adjustment purposes.