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Which statement best explains Audit risk?

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Question ID #26762 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC 2026 Full-Length Mock Test 3 Medium

Which statement best explains Audit risk?

Correct Answer: B. Risk that the auditor expresses an inappropriate opinion when financial statements are materially misstated
Audit risk: Risk that the auditor expresses an inappropriate opinion when financial statements are materially misstated

Question: Which statement best explains Audit risk?

A. Examination of documentary evidence supporting transactions

B. Risk that the auditor expresses an inappropriate opinion when financial statements are materially misstated

C. Audit procedures designed to detect material misstatements at the assertion level

D. Process designed to provide reasonable assurance regarding objectives such as reliable reporting and compliance

Correct Answer: B. Risk that the auditor expresses an inappropriate opinion when financial statements are materially misstatedAudit risk: Risk that the auditor expresses an inappropriate opinion when financial statements are materially misstated

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Which statement best explains Audit risk? - MCQ Explanation

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Correct answer: B. Risk that the auditor expresses an inappropriate opinion when financial statements are materially misstated