The auditor must perform substantive tests related to assertions deemed to have significant risks.

Question

Quizplus · Accepted Answer

This statement is true. According to auditing standards, the auditor should identify and assess the risks of material misstatement in the financial statements, including significant risks. If significant risks are identified, the auditor must perform substantive procedures related to those risks in order to obtain sufficient appropriate audit evidence.

The Auditor Must Perform Substantive Tests Related to Assertions Deemed