What Is Audit Risk

Multiple Choice

What is audit risk?

A) The risk that an auditor expresses an inappropriate audit opinion when financial statements are materially misstated
B) The risk that is explicit or implied and made by management regarding the recognition, measurement, presentation and disclosure of items included in the financial statements and notes
C) The risk that a client's internal controls will not prevent or detect a material misstatement on a timely basis
D) The assessed risk of material misstatement that, in the auditor's judgment, requires special audit consideration