Question: The risk that an auditor will conclude, based on substantive tests, that a material error does not exist in an account balance when, in fact,

The risk that an auditor will conclude, based on substantive tests, that a material error does not exist in an account balance when, in fact, such error does exist is referred to as
1.
sampling risk.
2.
inherent risk.
3.
control risk.
4.
detection risk.
Question content area bottom
Part 1
a. Analytical procedures used in planning an audit should focus on identifying
1.
material weaknesses in the system of internal control.
2.
the predictability of financial data from individual transactions.
3.
the various assertions that are embodied in the financial statements.
4.
areas that may represent specific risks relevant to the audit.

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