Choices about audit evidence are influenced by all of the following except:
A) the auditor's understanding of the business and industry.
B) decisions about inherent risk and control risk.
C) comparisons of the auditor's expectations of the financial statements with the client's books and records.
D) decisions about immaterial risk factors.
E) decisions about assertions that are material to the financial statements.

Question

Quizplus · Accepted Answer

Decisions about immaterial risk factors do not significantly influence choices about audit evidence because auditors focus on risks that could materially impact the financial statements. Immaterial risks, by definition, are not expected to significantly affect the auditor's conclusions.

Choices About Audit Evidence Are Influenced by All of the Following