Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 60

Which of the following statements is not true with respect to the performance principle?
A) Auditors are required to prepare a written audit plan during the planning stages of initial audits but are not required to do so in continuing audits.
B) Audit teams consider materiality in planning the audit, performing the audit, and evaluating the effect of misstatements on the entity's financial statements.
C) In assessing the risk of material misstatements, the audit team considers the effectiveness of the entity's internal controls in preventing and detecting misstatements.
D) Auditors are required to consider both the relevance and reliability of evidence in evaluating whether the evidence they have gathered is appropriate.