Audit risk affects the quantity and quality of evidence gathered by an auditor during the risk response phase.

Question

Quizplus · Accepted Answer

This statement is true. Audit risk, which is the risk that the financial statements are materially misstated even though the audit opinion is unqualified, affects the auditor's planned approach and the amount and type of evidence required during the risk response phase. Higher audit risk requires more extensive evidence-gathering procedures.

Audit Risk Affects the Quantity and Quality of Evidence Gathered