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:

Labor Protest

Collective action by workers, often in the form of strikes or demonstrations, to demand better pay, conditions, or rights from their employers.

Population

The entirety of individuals inhabiting an area or making up a particular group.

New York

A state in the Northeastern United States, known for its cultural, financial, and media impact worldwide, with its largest city, New York City, often described as the financial capital of the world.

19th Century

The period from 1801 to 1900, characterized by industrialization, imperial expansion, and significant social and political changes globally.