Question: Inherent risk refers to: The possibility that a material misstatement that has occurred will not be detected on a timely basis by the company's control

Inherent risk refers to:

The possibility that a material misstatement that has occurred will not be detected on a timely basis by the company's control system

The possibility that a material misstatement will occur in the financial statements

The possibility that a material misstatement that has occurred will not be caught be the independent auditor's testing

The possibility that a material misstatement will occur within the reporting company's accounting information system

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