As required by auditing standards,auditors should ordinarily presume there is a risk of material misstatement caused by fraud relating to revenue recognition.

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Auditing standards require auditors to presume the risk of material misstatement caused by fraud relating to revenue recognition. This is because revenue recognition is a critical accounting estimate and is often subject to management bias and manipulation. Therefore, auditors should approach the audit of revenue recognition with a skeptical mindset and design audit procedures to detect any potential fraudulent activities.

As Required by Auditing Standards,auditors Should Ordinarily Presume There Is