Which of the following procedures would most likely be performed in response to the auditor's assessment of the risk of monetary misstatements in the financial statements?
A) ratio analysis
B) tests of controls
C) tests of details of balances
D) risk assessment procedures

Question

Quizplus · Accepted Answer

Tests of details of balances are the most likely procedure to be performed in response to the auditor's assessment of the risk of monetary misstatements in the financial statements. This is because these tests focus on the accuracy and completeness of accounting transactions and account balances and are used to obtain sufficient evidence to support the financial statement assertions made by management. Ratio analysis and tests of controls may be performed in other audit areas, while risk assessment procedures are used to identify potential risks before determining the appropriate audit procedures to mitigate those risks.

Which of the Following Procedures Would Most Likely Be Performed