Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk. Audit risk has its three components; inherent risk, control risk, and detection risk. To choose: The combination of two components of audit risk that is refereed by risk of material misstatement.

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Chapter 4, Problem 4.15MCQ

To determine

Concept Introduction:

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

Audit risk has its three components; inherent risk, control risk, and detection risk.

To choose: The combination of two components of audit risk that is refereed by risk of material misstatement.

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