If the assessed risk of material misstatement for an assertion is high, _______.
A)the auditors should avoid auditing the assertion in question
B)auditors need to gather less persuasive audit evidence
C)auditors need to gather more persuasive audit evidence
D)the auditors should consider withdrawing from the engagement

Question

Quizplus · Accepted Answer

When the assessed risk of material misstatement for an assertion is high, it means that there is a greater likelihood that the financial statements contain a material misstatement. In such a scenario, auditors need to gather more persuasive audit evidence to reduce the risk of issuing an incorrect audit opinion. The auditors should also consider performing substantive procedures rather than relying on tests of control. Therefore, option C is the best choice - "auditors need to gather more persuasive audit evidence."

If the Assessed Risk of Material Misstatement for an Assertion