The audit process involves many different types of risk.

Required: Identify the type of risk most closely associated with each statement. Each type of risk may be used once, multiple times, or not at all. (8 points; 1 point each)

Group of answer choices

The audit client uses a large number of complex derivatives and hedges in its operations.

[ Choose ] Control risk Engagement risk Inherent risk Detection risk Audit risk

The audit clients financial reporting manager often goes through the motion in signing off on control procedures that he doesnt thoroughly consider.

[ Choose ] Control risk Engagement risk Inherent risk Detection risk Audit risk

The auditor expresses an inappropriate opinion on financial statements due to misstated amounts associated with derivatives.

[ Choose ] Control risk Engagement risk Inherent risk Detection risk Audit risk

The audit clients personnel have not been properly trained in the latest revenue recognition standards.

[ Choose ] Control risk Engagement risk Inherent risk Detection risk Audit risk

An auditors actions in performing an audit expose the auditor to financial and reputation damage.

[ Choose ] Control risk Engagement risk Inherent risk Detection risk Audit risk

The auditors procedures are insufficient in identifying a material misstatement that exists.

[ Choose ] Control risk Engagement risk Inherent risk Detection risk Audit risk

The audit clients internal controls are insufficiently designed.

[ Choose ] Control risk Engagement risk Inherent risk Detection risk Audit risk

The auditor issues an opinion on the basis of considering a material error immaterial.

[ Choose ] Control risk Engagement risk Inherent risk Detection risk Audit risk