If during risk assessment auditors have identified risks of material misstatement due to fraud, _______.
A)they may consider not changing the timing of audit procedures
B)they may consider changing the timing of audit procedures
C)the auditors should confront the employee(s) in question
D)the auditors should immediately report this to the SEC

Question

Quizplus · Accepted Answer

If auditors have identified risks of material misstatement due to fraud, they may consider changing the timing of audit procedures to mitigate those risks. This may involve performing substantive procedures earlier in the audit, increasing the extent of testing, or changing the nature of procedures performed. Confronting the employee(s) in question or immediately reporting to the SEC may not be appropriate or effective responses at this stage of the audit.

If During Risk Assessment Auditors Have Identified Risks of Material