Which of the following statements is true regarding the identification and assessment of the risks of material misstatements by the auditor?
A)Auditing standards require the auditor to identify and assess the risks of material misstatement due to fraud at the financial statement level.
B)Auditing standards require the auditor to identify and assess the risks of material misstatement due to fraud at the assertion level.
C)As part of brainstorming activities,the auditor should identify possible frauds that could occur.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

All of these statements are true regarding the identification and assessment of the risks of material misstatements by the auditor. Auditing standards mandate the assessment of risks both at the financial statement level and at the assertion level, including the consideration of possible frauds during brainstorming activities.

Which of the Following Statements Is True Regarding the Identification