Audit risk is composed of 3 factors. Which of the following is NOT one of those factors?
Correct answer: A. Compliance risk
- A. Compliance risk
- B. Detection risk
- C. Control risk
- D. Inherent risk
Explanation
Audit risk consists of inherent risk, control risk, and detection risk. Compliance risk may be assessed separately but is not one of the three components of the audit-risk model.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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