Millie Buenavista Made the Following Two Statements Concerning Inherent Risk

question 26

Multiple Choice

Millie Buenavista made the following two statements concerning inherent risk:
(i) Inherent risk is the risk that an auditor expressan inappropriate audit opinion when the financial statements are materially misstated.
(ii) Inherent risk deals with the susceptibility of the financial statements to material misstatements without considering internal controls.

• A) Both statements are correct.
• B) Neither statement is correct.
• C) Only statement (i) is correct.
• D) Only statement (ii) is correct.

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