In an audit, the auditor has a requirement to address risk assessment with respect to:
A) The design and performance of audit procedures to respond to assessed risks
B) Whether the standards close the expectation gap
C) The role and responsibilities of the audit committee in preventing fraud
D) Ensuring that no fraud occurred for the period under audit

Question

Quizplus · Accepted Answer

Risk assessment is a crucial step in the audit process, and the auditor is required to design and perform audit procedures that respond to assessed risks. This is to ensure that the audit is conducted in an effective and efficient manner and that the auditor obtains sufficient evidence to support their opinion on the financial statements. Options B and C are not directly related to risk assessment, and option D is not feasible as it is impossible to ensure that no fraud occurred during the period under audit.

In an Audit, the Auditor Has a Requirement to Address