When the risk of material misstatement for an assertion is high, the auditors_______.
A)must gather less reliable and persuasive evidence
B)must gather more reliable and persuasive evidence
C)should not attempt to audit this assertion
D)should consider allowing the internal audit function to audit this assertion

Question

Quizplus · Accepted Answer

When the risk of material misstatement for an assertion is high, the auditors must gather more reliable and persuasive evidence to detect and prevent any potential misstatements. This is because a high-risk assertion has a greater potential impact on the financial statements, and therefore, the auditors must obtain sufficient, appropriate evidence to support the assessed level of risk for the assertion.

When the Risk of Material Misstatement for an Assertion Is