Which of the Following Statements Regarding Audit Risk (AudR)and Accounting

question 37

Multiple Choice

Which of the following statements regarding audit risk (AudR) and accounting risk (AccR) is FALSE?

• A)AccR is largely geared to reflect business risks of the auditee.
• B)AccR is the material difference between an estimate involving future events and its outcome.
• C)AudR is something that is relevant to the auditee but not to the auditor.
• D)The auditor has to consider both AudR and AccR and somehow combine them using professional judgment.