- 1 Marks
AA – L2 – SA – Q3.4 – Audit Risk Definition
Question
Which of the following best describes audit risk?
A That the audit will not be completed in time
B That the client will wish to propose the removal of the auditor
C That the auditor will not have sufficient senior staff available
D That the auditor will give the wrong opinion in his report
Answer
D
Explanation:
Audit risk is the risk that the auditor expresses an inappropriate opinion on the financial statements (D). Timeliness (A), client actions (B), and staffing (C) are operational risks, not audit risk, which focuses on the correctness of the audit opinion. Thus, D is correct.
- Tags: Audit Documentation, Evidence, ICAG, Quality Review
- Level: Level 2
- Topic: Audit and Assurance Evidence
- Uploader: Salamat Hamid