Which level of risk does the auditor normally assign to the presentation and disclosure-related assertion of completeness for contingent liabilities and subsequent events?
A)low risk for inherent risks that required information may not be disclosed in the notes
B)medium for control risk with respect to identifying relevant events
C)medium with respect to providing adequate detail for the notes
D)high risk that all required information may not be disclosed in the notes

Question

Quizplus · Accepted Answer

The auditor would assign a high risk to the presentation and disclosure-related assertion of completeness for contingent liabilities and subsequent events because there is a risk that all required information may not be disclosed in the notes. This is due to the inherent uncertainty and complexity involved in identifying and measuring contingent liabilities and subsequent events, as well as the potential for management bias or fraud. The other options (A, B, and C) may be relevant as well, but the high risk of incomplete disclosure is the most significant consideration.

Which Level of Risk Does the Auditor Normally Assign to the Presentation