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      Question

      The risk that an auditor's procedures will fail to

      detect a material misstatement is known as:
      A Inherent Risk Correct Answer Incorrect Answer
      B Control Risk Correct Answer Incorrect Answer
      C Detection Risk Correct Answer Incorrect Answer
      D Audit Risk Correct Answer Incorrect Answer

      Solution

      As per SA 200, Detection Risk is the risk that the auditor's substantive procedures will not detect a material misstatement that exists in an assertion.

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