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:

Self-regulation

The ability of an individual or organization to monitor and control their own behavior or operations, often without external intervention.

Core Thinking Skill

A fundamental ability to engage in cognitive processes such as analysis, synthesis, problem-solving, and evaluation.

Analytical

Pertaining to the systematic examination or evaluation of details in order to understand or explain something.

Disposed

Having a particular inclination or tendency towards something, either naturally or through conditioning.