AUDIT RISK Definition

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AUDIT RISK is a combination of the risk that material errors will occur in the accounting process and the risk the errors will not be discovered by audit tests. Audit risk includes uncertainties due to sampling (sampling risk) and to other factors (non-sampling risk).

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BEAR is an investor who expects share prices to fall and thus likely to sell short. More generally, a pessimist about the market outlook.

BALANCE SHEET GEARING is the ratio of interest-bearing debt to equity.

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