Detection Risk Is

question 128

Multiple Choice

Detection risk is

• A)the susceptibility of management assertions in an accounting business process to a material misstatement assuming no internal controls
• B)the risk that internal controls fail to prevent or detect misstatements in the financial statements
• C)the risk that substantive audit procedures fail to detect misstatements in the financial statements
• D)the risk of assuming a clean opinion when the financial statements are materially incorrect

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Definitions:

Predict

To declare or indicate in advance; especially, to foretell based on observation, experience, or scientific reasoning.

Score

A numerical or categorical measure that represents an individual's performance, achievement, or status on a particular task or assessment.

Effect Size

A quantitative measure of the magnitude of the experimental effect, indicating how large the difference is between groups.

Association

A connection or relationship between two or more variables, where changes in one variable relate to changes in another.