Which of the following statements is correct concerning the risk of material misstatement?

Risk of material misstatement can be controlled and changed by the auditor. None of these statements are correct. Risk of material misstatement is controllable by the client. Risk of material misstatement must be assessed in non-quantitative terms. Risk of material misstatement arises because audit procedures have been misapplied.

If ______________________, the CPA would still be considered independent.

A CPA's brother is the Vice-President of Sales at the CPA's audit client. A CPA's son works summers at the audit client and has earned 10 shares of stock in the audit client. The CPA would not be considered independent in any of these situations. A CPA's father was a salesman at the CPA's audit client and now a major portion of the father's pension fund is invested in the audit client. A CPA's cousin works as a web-site designer at the audit client.