If the risk of material misstatement is assessed as very low,it is likely that additional substantive procedures will be required.

Question

Quizplus · Accepted Answer

If the risk of material misstatement is assessed as very low, then it is likely that fewer substantive procedures will be required as the risk is deemed to be low. This is based on the principle of audit risk, which says that the auditor should match the level of substantive procedures with the assessed level of risk. The higher the risk, the more substantive procedures are required. Therefore, if the risk is very low, fewer substantive procedures would be necessary.

If the Risk of Material Misstatement Is Assessed as Very