The assessed level of inherent and control risk for each assertion will _______.
A)guide auditors in developing their audit strategy to gather appropriate audit evidence
B)guarantee the effectiveness of the client's system of internal controls
C)eliminate the risk of material misstatement for each account
D)eliminate the need for professional skepticism

Question

Quizplus · Accepted Answer

The assessed level of inherent and control risk for each assertion will guide auditors in developing their audit strategy to gather appropriate audit evidence. This information is used to plan the nature, timing, and extent of audit procedures to be performed in order to gather sufficient evidence to support the auditor's opinion on the financial statements. It does not guarantee the effectiveness of the client's system of internal controls, eliminate the risk of material misstatement for each account, or eliminate the need for professional skepticism.

The Assessed Level of Inherent and Control Risk for Each