Which of the Following Statements Is Correct About Audit Risk

question 4

Multiple Choice

Which of the following statements is correct about audit risk?

• A) It is impossible to completely eliminate audit risk.
• B) Audit risk is the risk that an auditor expresses an inappropriate opinion when thefinancial statements are materially stated.
• C) Audit risk can be reduced at the planning stage of an audit by identifying the key risks faced by the client.
• D) All of the above.

---

Definitions:

Domination

The exercise of power or control over others, often suppressing their autonomy or freedom.

Managing Conflict

The process of identifying and addressing differences that threaten the goals or interests of an organization or individual.

External Goals

Objectives that focus on outcomes beyond an individual's personal desires, often involving others or societal norms.

Relationship

A connection, association, or involvement between people or entities.