AICPA Exam CPA-Auditing Topic 1 Question 112 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 112
Topic #: 1

Which of the following risks may be assessed in nonquantitative terms?

AOption A

BOption B

COption C

DOption D
Explanation
Choice 'c' is correct. Both the risk of material misstatement (including control risk and inherent risk) and detection risk may be assessed in quantitative terms such as percentages or in nonquantitative terms that range, for example, from a minimum to a maximum.
Choices 'a', 'b', and 'd' are incorrect, based on the above explanation.

Show Suggested Answer

Suggested Answer: C

by Rickie at Jun 10, 2025, 07:13 PM

Limited Time Offer

25%

Off

Get Premium CPA-Auditing Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Teddy

3 days ago

I think the risk of material misstatement can be assessed in nonquantitative terms.

upvoted 0 times

...

Augustine

4 days ago

Option C, definitely. Nonquantitative risk assessment just makes sense for some things, you know? Can't always put a number on everything.

upvoted 0 times

...