Inherent Risk Is the

Multiple Choice

Inherent risk is the

A) Probability that some accounts are more susceptible to misstatement than others.
B) Probability that the client's internal control policies and procedures will fail to detect material misstatements.
C) Probability that material misstatements have occurred in transactions entering the accounting system used to develop financial statements.
D) Probability that the auditor may not detect material misstatements in the financial statements.