FMGT 4310 - CHAPTER 8 MULTIPLE CHOICE questions and answers with solutions 2025

The risk that an auditor expresses an inappropriate audit opinion when the financial statements are materially misstated a) audit risk b) inherent risk c) control risk d) detection risk - ANSWER a) audit risk The risk that the auditor's testing procedures will not be effective in detecting a material misstatement a) audit risk b) inherent risk c) control risk d) detection risk - ANSWER d) detection risk the risk that a client's system of internal controls will not prevent or detect a material misstatement on a timely basis a) audit risk b) inherent risk c) control risk d) detection risk - ANSWER c) control risk The susceptibility of the financial statements to a material misstatement without considering the internal controls a) audit risk b) inherent risk c) control risk d) detection risk - ANSWER b) inherent risk