Answered: The risk that audit evidence for a…

The risk that audit evidence for a segment will fail to detect misstatements exceeding tolerable misstatement is: * Audit risk

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter7: Planning The Audit: Identifying, Assessing, And Responding To The Risk Of Material Misstatement

Section: Chapter Questions

Problem 10RQSC

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Question

The risk that audit evidence for a
segment will fail to detect
misstatements exceeding tolerable
misstatement is:
Audit risk
Inherent risk
Planned detection risk
O Control risk

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The combination of inherent risk and control risk refers to: * Detection risk Audit risk Risk of material misstatement Engagement risk None of the above
Which of the following terms best describes the risk that audit procedures will fail to detect material misstatements? a. Control risk. b. Inherent risk. c. Detection risk. d. Audit risk.
What are the components of the risk of material misstatement (RMM)? What are the components of the audit risk model?
This term is synonymous with acceptable audit risk. O Audit assurance O Tolerable misstatement O Detection risk O Materiality
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Assuming a lack of internal control in a client's system, the risk of material misstatement is known as? O Inherent risk Client risk O Detection risk O Audit risk
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the susceptibility of an account balance or class of transactions to misstatements that could be material, individually or when aggregated with misstatements in other balances or classes, assuming that there were no related internal control is called : Select one: a. control risk b. audit risk c. detection risk d. inherent risk
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The risk of a material misstatement in the financial statements arising due to error or omission as a result of factors other than the failure of controls is called: a. Control Risk b. Inherent Risk c. Audit Risk d. Detection Risk
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