Because of the risk of material misstatement due to improper management representations, an audit of financial statements in accordance with GAAS should be performed with:
A) Objective judgment
B) Professional skepticism
C) Internal controls
D) Due diligence

Question

Quizplus · Accepted Answer

Professional skepticism is necessary in order to maintain an objective and critical mindset when assessing the validity of management representations. Internal controls and due diligence are important factors in an audit, but they do not directly address the risk of material misstatement due to improper management representations. Objective judgment is important, but it is closely related to professional skepticism and is not sufficient on its own.

Because of the Risk of Material Misstatement Due to Improper