Errors in audit procedures PRIMARILY impact which of the following risks?

When considering the impact of errors in audit procedures, detection risk is primarily affected. Detection risk refers to the risk that an auditor will not detect a misstatement that exists in an assertion. This means that if errors occur in the audit procedures themselves—such as in planning, execution, or evaluation of audit evidence—then the auditor may not identify material misstatements in the financial statements.

Inherent risk and control risk, on the other hand, relate to the nature of the entity and its environment, as well as the effectiveness of internal controls, respectively. Inherent risk pertains to the susceptibility of an assertion to material misstatement, whereas control risk involves the risk that material misstatements will not be prevented or detected by internal controls. While these risks are critical to the audit process, they are not directly influenced by the auditor's procedural errors.

Business risk is broader and encompasses the risk that an organization will be unable to achieve its objectives, which can arise from various external and internal factors. This aspect of risk is less directly tied to the audit procedures and instead focuses on the overall operational risks faced by the organization itself.

In summary, errors in audit procedures create a direct relationship with detection risk, as they compromise the auditor's ability to accurately identify and