When an auditor decides on a higher acceptable audit risk, one effect is that the auditor wants to be more certain the accounts are not materially misstated.

Question

Quizplus · Accepted Answer

When an auditor decides on a higher acceptable audit risk, it means that the auditor is willing to accept a higher risk of material misstatement in the accounts. This in turn means that the auditor is willing to be less certain that the accounts are not materially misstated. Therefore, the statement in the question is false.

When an Auditor Decides on a Higher Acceptable Audit Risk