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Auditing

Lecture 7 & 8

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

Question 11 of 57

What is detection risk?

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

The risk that the financial statements are misstated before audit

B

The risk that management refuses to provide representations

C

The risk that the client's controls are poorly designed

D

The risk that the auditor's procedures will not detect a material misstatement that exists