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Sir,
Is there any difference between the risk of material misstatement and principle audit risk?The principal audit risks encountered when auditing a client’s financial statements are those that can result in material misstatement.
There’s a good question in December 2011 question 1 (Oak Company) that asks for the identification of the principal audit risks and then asks you to recommend appropriate audit procedures
The two expressions are not quite the same …… a subject matter at the client will present an audit risk because it could result in material misstatement. They are closely related (to quote a recent article in an accountancy magazine, they are “inextricably intertwined”), but not quite usable interchangeably. Not quite
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