Auditors are most likely to use the most rigorous audit procedures to examine
A) Routine transactions.
B) Management assertions that are deemed to be of low risk.
C) Only the rights and obligations assertion.
D) Management assertions that are deemed to be of high risk.

Question

Quizplus · Accepted Answer

Auditors are most likely to use the most rigorous audit procedures to examine management assertions that are deemed to be of high risk. This is because high-risk assertions have a greater likelihood of containing material misstatements, which are errors or frauds that could have a material effect on the financial statements. Therefore, the auditor needs to obtain a higher level of assurance to reduce the risk of making an incorrect opinion on the financial statements.

Auditors Are Most Likely to Use the Most Rigorous Audit