Difference between risk of material misstatement and significant risk

See pages 54 and 59 for risk of material misstatements – you should know the definition of material from earlier studies.

Significant risk is defined on page 55:

Significant risk – a risk of misstatement which is close to the upper end of the spectrum of
inherent risk or treated as significant in accordance with an ISA (e.g. revenue recognition).

with examples at the bottom of page 59.

Revenue recognition is a significant risk because ISA 240 says it is – see https://opentuition.com/topic/isa-240-2 if you don’t know this from AA studies.