Audit Executive and Accountant Interview Questions and Answers

Audit risk is the risk that the financial statements are materially misstated and the auditor fails to detect it.

• Audit risk is the risk that the auditor expresses an inappropriate audit opinion on financial statements that are materially misstated.

• It is composed of inherent risk, control risk, and detection risk.

• Inherent risk is the susceptibility of an assertion to a material misstatement, control risk is the risk that a material misstatement could occur and not be prevented...read more

Types of audit opinions include unqualified, qualified, adverse, and disclaimer.

• Unqualified opinion: clean opinion, no material misstatements found

• Qualified opinion: some limitations or exceptions found in the audit

• Adverse opinion: significant issues found, financial statements are not reliable

• Disclaimer opinion: auditor unable to form an opinion due to lack of information or restrictions