Mr. David is the auditor of Al Amira Cement Company. He audits the financial statements of the company for the year 2019 and gives a report that the financial statements are true and fair. But in the year 2020 few material misstatement were detected in the financial statements of the company. This risk which has occurred because of Mr. David's failure to detect a material misstatement in the financial statements is known as: Control risk Inherent risk Faulty risk Detection risk
Mr. David is the auditor of Al Amira Cement Company. He audits the financial statements of the company for the year 2019 and gives a report that the financial statements are true and fair. But in the year 2020 few material misstatement were detected in the financial statements of the company. This risk which has occurred because of Mr. David's failure to detect a material misstatement in the financial statements is known as: Control risk Inherent risk Faulty risk Detection risk
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mr. David is the auditor of Al Amira Cement Company. He audits the financial statements of
the company for the year 2019 and gives a report that the financial statements are true and
fair. But in the year 2020 few material misstatement were detected in the financial statements
of the company. This risk which has occurred because of Mr. David's failure to detect a
material misstatement in the financial statements is known as:
Control risk
Inherent risk
Faulty risk
Detection risk
Oestion 15
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