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Which statement best explains Detection risk?

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Question ID #27476 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC 2026 Full-Length Mock Test 9 Medium

Which statement best explains Detection risk?

Correct Answer: B. Risk that audit procedures will not detect a material misstatement
Detection risk: Risk that audit procedures will not detect a material misstatement

Question: Which statement best explains Detection risk?

A. Evaluation of financial information through plausible relationships among data

B. Risk that audit procedures will not detect a material misstatement

C. Independent assurance activity within or for an organization to evaluate controls, risk management and governance

D. Application of audit procedures to less than 100 percent of items in a population

Correct Answer: B. Risk that audit procedures will not detect a material misstatementDetection risk: Risk that audit procedures will not detect a material misstatement

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Which statement best explains Detection risk? - MCQ Explanation

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Correct answer: B. Risk that audit procedures will not detect a material misstatement