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Engagement risk is the risk of the auditor not detecting a misstatement during the audit engagement through doing an insufficient amount of testing. True or False?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/02/25
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Danish Ahmed Khan
by Danish Ahmed Khan , Assistant Manager - Tax , KPMG

False. Engagement risk is where the auditor might express an inappropriate opinion when the financial statements are materially misstated. Whereas, the risk mentioned in the question pertains to detection risk.

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