Inherent risk and control risk differ from detection risk in that they May be assessed in...

Inherent risk and control risk differ from detection risk in that they

May be assessed in either quantitative or nonquantitative terms.

Exist independently of the financial statement audit.

Can be changed at the auditor’s discretion.

Arise from the misapplication of auditing procedures.

Expert Solution

Inherent risk and control risk differ from detection risk in that they exist independently of the financial statement audit.

Option 2 is correct

Explanation:

Inherent risk and control risk cannot be changed at the auditor’s discretion. Detection risk can be changed at the auditor's discretion so it is not independent of the financial statement audit.

ekkarill92 answered 2 years ago

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