Audit firms that have developed standardized programs for auditing long-lived assets do not need to customize the audit programs based on assessed risk of material misstatement because inherent risks related to long-lived assets are the same for all clients.

Question

Quizplus · Accepted Answer

While there may be similarities in the inherent risks related to long-lived assets across clients, there are still unique circumstances and factors that may impact the level of risk for each individual client. Therefore, audit firms should customize their audit programs based on the assessed risk of material misstatement for each client.

Audit Firms That Have Developed Standardized Programs for Auditing Long-Lived