The eight risk assessment auditing standards issued by the AICPA identify the following types of misstatements:
A)Known and unknown misstatements
B)Likely and unknown misstatements
C)Known and likely misstatements
D)All material misstatements

Question

Quizplus · Accepted Answer

The eight risk assessment auditing standards issued by the AICPA identify known and likely misstatements, as well as risks of material misstatement due to error or fraud. The standards do not specifically address "unknown" misstatements, and while all material misstatements are a concern, not all material misstatements may be identified during the risk assessment. Therefore, option C is the best choice as it accurately reflects the types of misstatements identified by the standards.

The Eight Risk Assessment Auditing Standards Issued by the AICPA