Question

The achieved (actual) level of audit risk:

1) can always be accurately assessed by the auditor.
2) should be greater than or equal to acceptable audit risk.
3) can never be known with certainty.
4) is the same for all audit engagements.

Answer 1

The achieved (actual) level of audit risk cannot be known with certainty and is affected by various factors.

Step-by-step explanation:

The achieved (actual) level of audit risk cannot be known with certainty. It is Option 3 from the given choices. This is because audit risk is affected by various factors, such as the nature of the business being audited, the complexity of the financial statements, and the extent of audit procedures performed. While auditors assess and mitigate audit risk to the best of their ability, there is always a level of uncertainty involved.