In performing risk assessment the auditor should identify the following types of misstatements:
A) Known and unknown misstatements
B) Likely and unknown misstatements
C) Known and likely misstatements
D) All material misstatements

Question

Quizplus · Accepted Answer

In performing risk assessment, the auditor should identify both known and likely misstatements. Known misstatements are those that have been detected by the auditor, while likely misstatements are those that the auditor suspects may exist but have not yet been detected. Identifying both types of misstatements is necessary to accurately assess the risk of material misstatement in the financial statements.

In Performing Risk Assessment the Auditor Should Identify the Following