It is possible that an audit performed in accordance with generally accepted auditing standards may fail to detect a material misstatement in the financial statements.

Question

Quizplus · Accepted Answer

While an audit performed in accordance with generally accepted auditing standards is designed to provide reasonable assurance that the financial statements are free from material misstatement, there is still a risk that some misstatements may not be detected due to factors such as the nature of the misstatement, limitations in the audit procedures or evidence available, or intentional efforts to conceal or misrepresent information. Therefore, it is possible for an audit to fail to detect a material misstatement in the financial statements.

It Is Possible That an Audit Performed in Accordance with Generally