If the auditor identifies a risk of material misstatement due to fraud related to debt obligations or stockholders' equity accounts, the auditor needs to determine the appropriate responses, potentially including changing the nature, timing, and extent of audit procedures.

Question

Quizplus · Accepted Answer

This statement is true. If the auditor identifies a risk of material misstatement due to fraud related to debt obligations or stockholders' equity accounts, the auditor needs to determine the appropriate responses, potentially including changing the nature, timing, and extent of audit procedures. This is in accordance with auditing standards, which require auditors to respond appropriately to such risks.

If the Auditor Identifies a Risk of Material Misstatement Due