Which of the Following Statements Is Correct About Audit Risk

question 29

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 the financial statements are materially stated.
• C) Audit risk can be reduced at the risk assessment phase of an audit by identifying the key risks faced by the client.
• D) all of the above

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Definitions:

Anti-D Antibodies

Proteins produced by the immune system in response to Rh positive blood in individuals who are Rh negative, potentially leading to hemolytic disease in newborns if not managed.

Blood Analysis

A laboratory examination of blood for the purpose of diagnosing or monitoring health conditions.

Anti-A Antibodies

Immune system proteins found in the plasma of people with type B or O blood, which target and attack A antigens on red blood cells.

Anti-D Antibodies

Antibodies formed against the Rhesus D antigen, often a concern in Rh-negative individuals during pregnancy or blood transfusion.