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Auditing

Lecture 7 & 8

Audit risk, inherent and control risk, internal controls, substantive procedures, and audit sampling.

Question 4 of 57

What is inherent risk?

Pick one: press 1-4 on your keyboard or click an option.
A

The risk that the auditor relies too much on management inquiry

B

The risk that a misstatement will not be prevented or detected by internal control

C

The susceptibility of an assertion to a material misstatement before considering controls

D

The risk that audit procedures will fail to detect a material misstatement