To ensure that a high level of assurance is provided by the audit opinion,what must the auditor do?
A)Plan and execute the audit to ensure an acceptably low risk of material misstatement is achieved.
B)Plan and execute the audit to ensure an acceptably low level of audit risk is achieved.
C)Plan and execute the audit to ensure an acceptably low level of inherent risk is achieved.
D)Plan and execute the audit to ensure an acceptably low level of detection risk is achieved.

Question

Quizplus · Accepted Answer

The auditor must plan and execute the audit to ensure an acceptably low level of audit risk is achieved. Audit risk is the risk that the auditor expresses an inappropriate opinion when the financial statements are materially misstated. It encompasses inherent risk, control risk, and detection risk, but the auditor's focus is on managing the overall audit risk to an acceptable level.

To Ensure That a High Level of Assurance Is Provided