The auditor should identify the types of risk that could cause misstatement in the material account balances and the processes that would allow the misstatement to occur.

Question

Quizplus · Accepted Answer

The auditor's responsibility includes identifying and assessing the risks of material misstatement in the financial statements, whether due to fraud or error, at the financial statement and assertion levels. This involves understanding the entity's environment, its internal control, and the types of risks that could lead to material misstatements, as well as the processes and controls in place to prevent or detect such misstatements.

The Auditor Should Identify the Types of Risk That Could