What type of systematic audit error or bias occurs when an auditor fails to modify their opinion on materially misstated financial statements?

Explanation

• Audit Risk is the risk that an auditor issues an inappropriate (unqualified) audit opinion on financial statements that are materially misstated.
• Audit Risk consists of three components: Inherent Risk, Control Risk, and Detection Risk ($text{Audit Risk} = text{Inherent Risk} times text{Control Risk} times text{Detection Risk}$).
• Detection Risk is the only component directly controllable by auditor testing procedures.