Audit firms should NOT customize the audit programs based on the assessment of the risk of material misstatement when auditing long-lived assets.

Question

Quizplus · Accepted Answer

Audit firms should customize the audit programs based on the assessment of the risk of material misstatement when auditing long-lived assets. This is because the risk of material misstatement varies depending on the nature, complexity, and size of the long-lived assets, as well as the relevant financial reporting framework. Therefore, a standardized audit program may not be appropriate in all situations and a customized program can help to ensure that audit procedures are targeted to the specific risks of material misstatement.

Audit Firms Should NOT Customize the Audit Programs Based on the Assessment