Because of the risk of material misstatement, an audit of financial statements in accordance with GAAS should be planned and performed with
A) Objective judgment
B) Professional skepticism
C) Internal controls
D) Due care

Question

Quizplus · Accepted Answer

Professional skepticism is necessary in an audit as it involves an attitude of questioning and critical assessment of evidence obtained during the audit. This is important to identify potential material misstatements in the financial statements. Objective judgment, due care, and internal controls are also important in an audit, but professional skepticism is the most relevant choice in this scenario.

Because of the Risk of Material Misstatement, an Audit of Financial