alleryStart learning →Audit risk is the risk that the auditor gives an inappropriate opinion when the financial statements are what?
AIssued very late
BNot yet approved
CMaterially misstated
DStated in cash terms
Answer & Solution
Correct answer: C. Materially misstated
Audit risk concerns expressing a wrong opinion on statements that contain a material misstatement.
Keep practising Risk Assessment and Internal Control
Browse all Risk Assessment and Internal Control questions for CA Final, or explore more Auditing topics.
Related questions
Which is correct about auditors and internal control?The COSO risk assessment component involves what?A payables system matches order, receipt and invoice before paying. Which objective?Maintaining documentation to substantiate transactions is which control activity?Why did the IASB decline a uniform numeric materiality threshold?Materiality is reassessed at the conclusion of the audit before the report is issued. WhatWhat is the purpose of setting performance materiality?Which expression gives audit risk in the audit risk model?