Detection Risk Refers to

question 47

Multiple Choice

Detection risk refers to

• A) the susceptibility of an assertion to a material misstatement, assuming there are no related controls.
• B) the risk that the auditor's testing procedures will not be effective in detecting a material misstatement.
• C) the risk that a client's system of internal controls will not prevent or detect a material misstatement.
• D) none of the above

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Definitions:

Population Mean

The average of all the values in a population, calculated as the sum of all values divided by the number of values.

Sample Mean

The arithmetic average of a set of numerical values, calculated by adding them together and dividing by the number of observations.

Sample

A subset of individuals or observations selected from a larger population for the purpose of statistical analysis.

Descriptive Measure

A descriptive measure provides a summary or analysis that captures the characteristics or features of a dataset, often in terms of central tendency or variability.