Which of the following is NOT correct about the audit discussion about the susceptibility of the entity's financial statements to material misstatement?
A)the discussion must be done during the planning phase
B)the purpose of the discussion is to allow audit team members gain a better understanding of the potential for misstatement
C)the team determines the audit tests to mitigate the possibility of misstatements
D)the discussion must be documented in the work papers

Question

Quizplus · Accepted Answer

The team may determine the audit tests to address the risk of material misstatement during the planning phase or during subsequent phases of the audit. Therefore, it is not necessary for this determination to be made during the discussion about susceptibility to misstatement.

Which of the Following Is NOT Correct About the Audit