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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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