Question

The risk that an auditor’s procedures will lead to the conclusion that a material misstatement does...

The risk that an auditor’s procedures will lead to the conclusion that a material misstatement does not exist in an account balance when, in fact, such misstatement does exist is

Detection risk.

Inherent risk.

Audit risk.

Control risk.

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Answer #1

Answer = Detection risk

Explanation:

As per the definition of detection risk ; detection risk is the risk that a material misstatement will not be detected or it is the possibility that the audot procedure used will lead to an improper conclusion that no material misstatement exist in an assertion while it actually exist. Detection risk is only risk that is under the control of auditor while other risk like inherent risk are not. The more the audit procedure used the less will be the detection risk.

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