Which of the following best describes risk assessment,from an auditor's perspective?
A)Financial statements cannot be audited,for example,because the auditor was appointed after the year end.
B)Financial statements distributed by the auditee are not materially false and misleading.
C)The auditor will not overlook significant errors in the financial statements.
D)Identify and assess the risk of material misstatements.

Question

Quizplus · Accepted Answer

Risk assessment is the process of identifying and assessing the risk of material misstatements in the financial statements. This is an important task for auditors to ensure that they conduct an appropriate audit and provide a reliable opinion on the financial statements. A, B, and C are not related to the concept of risk assessment.

Which of the Following Best Describes Risk Assessment,from an Auditor's