Mathias Mousseau 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?
A) risk assessment phase
B) risk response phase
C) reporting phase
D) none of the above

Question

Quizplus · Accepted Answer

Mathias Mousseau was performing the risk assessment phase of the audit, which involves identifying and assessing the risks of material misstatement due to error or fraud in the client's financial statements. The risk response phase involves developing audit procedures to respond to the identified risks, while the reporting phase involves communicating the results of the audit to stakeholders. None of these phases involve preparing work for the following day.

Mathias Mousseau Was at a Client's Offices and Was Preparing