The 'Audit Risk' may exist while verifying various _________.

items of cash book

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items of manufacturing accounts

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items of profit and loss account

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items of balance sheet

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Solution

The correct option is D items of balance sheet
Audit risk is the risk that financial statements are materially incorrect even though the audit opinion states that the financial reports are free of any material misstatements.
The Audit risk exist while verifying the various items of balance sheet as the auditor has to certify the balance sheet items of the organization on a particular date including the actual existence along with assets valuation.

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