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dusya [7]
2 years ago
7

The chance that the audit team's substantive procedures will fail to uncover a material misstatement is called ______ risk.

Social Studies
1 answer:
satela [25.4K]2 years ago
4 0

The chance that the audit team's substantive procedures will fail to uncover a material misstatement is called <u>detection</u> risk.

Detection risk tends to occur when an auditor fails in order to identify a material misstatement in a company's financial statements. Such misstatements might be due to either error or fraud. The work of auditors is to make use of the audit procedures in order to detect such material misstatements.

There can always be a certain amount of detection risk that will exist. So here the auditor's goal is to lower the detection risk so that the for overall audit risk remains in an acceptable level.

Hence, suppose if an auditor fails to implement the correct audit procedures, detection risk can reach unacceptable levels.

To learn more about detection risk here:

brainly.com/question/4298484

#SPJ4

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