The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of auditing procedures and in evaluating the results of those procedures.

Which of the following best describes audit risk?

Multiple Choice $$

The risk that an auditor will be unable to complete the audit because of limitations imposed by the client. $$

The risk that the client will not disclose relevant information to the auditor during the audit. $$

The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. $$

The risk that an auditor expresses an inappropriate audit opinion when the financial statements are not materially misstated.