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CISA QUESTION #1791
Question 1
Which type of audit risk is represented by a failure to detect or prevent a material error from occurring?
  • Overall audit risk
  • Detection risk✔️
  • Inherent risk
  • Control risk
Correct Answer Explanation
Detection risk is the risk that the auditor fails to identify a material error that exists. It arises from limitations in the audit procedures used rather than from the nature of the subject matter. Proper sampling methods and thorough testing procedures are employed specifically to minimize detection risk.