Match the phrases below with the most closely corresponding term. Each term may be used once, more than once, or not at all.

Word Bank:

Planning materiality, inherent risk, control risk, audit risk, fraud, audit materiality, account materiality, error, business risk, detection risk, engagement risk.

1. The auditor does not identify a material misstatement.

2. The highest amount of misstatement acceptable to the auditor.

3. The company maintains a significant amount of very popular athletic shoes.

4. The auditor issues an unqualified opinion when there is a material misstatement in the financial statements.

5. The company's internal processes would not prevent a significant overstatement of revenue.

6. The highest amount of misstatement in Inventory acceptable to the auditor.

7. An employee enters a bill for office supplies and distributes the amount to the Inventory account.

8. The accounting manager instructs the billing clerk to enter revenue related to products shipped to customers on January 2, 2020 in the December 2019 sales journal.