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

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Teddy

16 days ago

So, the correct answer is Option C then.

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Graciela

18 days ago

I agree, it can also be assessed in quantitative terms like percentages.

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Anjelica

27 days ago

This question is a piece of cake! Option C is the way to go. I could assess risks with my eyes closed. Well, maybe not literally, but you get the idea.

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