An auditor assesses the risk of material misstatement to determine the impact on the audit plan and to determine the nature, extent, and timing of the audit procedures.

Question

Quizplus · Accepted Answer

This statement is true. Risk assessment is a crucial step in the audit process and helps the auditor tailor their audit approach to the specific risks identified. The level of risk can impact the nature, extent, and timing of the audit procedures performed by the auditor.

An Auditor Assesses the Risk of Material Misstatement to Determine