Audit procedures should be proportional to which of the following?
A)Size of the client.
B)Size of the firm.
C)The assessed risks.
D)The assessed misstatements.

Question

Quizplus · Accepted Answer

Audit procedures should be proportional to the assessed risks. This means that the auditor should allocate more resources and perform more extensive procedures in areas where there are higher risks of material misstatement. The size of the client and firm may be factors to consider when assessing risks, but they are not the only ones. Similarly, the assessed misstatements are a result of the audit procedures, not a determinant of them.

Audit Procedures Should Be Proportional to Which of the Following