Mario Moreau was at a client's offices and was preparing his work for the following day. He was considering the risk that a material misstatement due to significant error or fraud could occur in the client's financial statements. Which of the three main stages of the audit was he performing?

Question

Quizplus · Accepted Answer

Mario Moreau is considering the risk of material misstatement due to significant error or fraud, which is a key component of the planning stage of an audit. During this stage, the auditor identifies risk areas, develops an audit plan, and sets materiality thresholds.

Mario Moreau Was at a Client's Offices and Was Preparing