The risk that that auditor will conclude that an assertion is true when in fact it is false. Because an audit only provides reasonable rather than absolute assurance about assertions, a low level of audit risk is acceptable. The auditor must select and apply the audit procedures needed to limit audit risk to this low level. Backup A copy of a computer program or file stored separately from the original.
Represent material misstatements undetected by the auditor.
Audit risk is a term that is commonly applied in relation to the audit of the financial statements of an entity. (See financial audit). The primary objective of such an audit is to provide an opinion as to whether or not the financial statements present fairly the financial position and results of the entity.