Inherent Risk Refers To

Inherent risk refers to:

A) The possibility that a material misstatement will occur within the reporting company's accounting information system
B) The possibility that a material misstatement that has occurred will not be detected on a timely basis by the company's control system
C) The possibility that a material misstatement that has occurred will not be caught be the independent auditor's testing
D) The possibility that a material misstatement will occur in the financial statements

Correct Answer:

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