Audit Risk

AUDIT RISK

Audit risk is the risk that the auditor will get the audit opinion wrong.
 In practice, this nearly always means that the auditor will fail to qualify an audit report that he should have qualified.

 In order for this situation to arise, there needs to be a material error in the accounting records or the financial statements which was not corrected before the financial statements were published and which the auditor did not refer to in the audit report.


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