What are the benefits of considering management assertions in the audit process?
A)Assertions help guide the procedures conducted by auditors.
B)Assertions guarantee that fraud will be found.
C)It is possible to eliminate audit risk when assertions are used.
D)Assertions eliminate the risk that inventory will be stolen.

Question

Quizplus · Accepted Answer

Management assertions provide a framework for auditors to determine what audit procedures should be performed and how to approach the audit. By considering management assertions, the auditor can focus their efforts on areas where there is a higher risk of material misstatement or fraud. However, assertions do not guarantee that fraud will be found, and it is not possible to eliminate audit risk altogether. Assertions also do not eliminate the risk of theft or other misappropriation of assets.

What Are the Benefits of Considering Management Assertions in the Audit