Which of the following heavily influences the process of determining an audit strategy for an account or assertion?
A)The risk of material misstatement
B)Materiality
C)Professional skepticism
D)All of these options are correct.

Question

Quizplus · Accepted Answer

All three options heavily influence the process of determining an audit strategy. The risk of material misstatement helps the auditor evaluate the likelihood of material misstatements occurring in the financial statements, which in turn affects the degree of testing and level of assurance needed. Materiality affects the auditor's judgment of whether a particular misstatement is significant enough to impact the financial statements as a whole. Finally, professional skepticism is crucial for auditors to maintain an objective and critical mindset during the audit process, keeping in mind the possibility of fraud or error in the financial statements.

Which of the Following Heavily Influences the Process of Determining