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American Bankers Association CTFA Exam - Topic 3 Question 104 Discussion

The maximum error in the population that the auditor is willing to accept is called:
C) Both A & B
A) Risk of material misstatement
B) detection of risk
D) Neither A nor B

American Bankers Association CTFA Exam - Topic 3 Question 104 Discussion

Actual exam question for American Bankers Association's CTFA exam
Question #: 104
Topic #: 3
[All CTFA Questions]

The maximum error in the population that the auditor is willing to accept is called:

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Suggested Answer: C

by Juliann at May 16, 2026, 11:58 AM

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Alonso
2 hours ago
It's called the risk of material misstatement!
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Mari
5 days ago
I’m leaning towards A as the correct answer, but I remember there being some confusion in class about the definitions of these terms.
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Keneth
10 days ago
I feel like both A and B could be relevant, but I can't recall if detection risk is the same as the maximum error we're discussing here.
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Albert
16 days ago
I remember practicing a question similar to this, and I think the answer was A, but I could be mixing it up with another concept.
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Ammie
2 months ago
I think the term we're looking for might be related to the risk of material misstatement, but I'm not entirely sure.
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