The Auditor's Responsibility paragraph in the auditor's report includes two important phrases that are directly related to materiality and risk.What are these two phrases?
1)'relevant ethical requirements relating to audit engagements'
2)'plan and perform the audit'
3)'free from material misstatement'
4)'reasonable assurance'
A) 1 and 2
B) 3 and 4
C) 2 and 3
D) 1 and 4

Question

Quizplus · Accepted Answer

The two important phrases in the Auditor's Responsibility paragraph in the auditor's report that are directly related to materiality and risk are "free from material misstatement" and "reasonable assurance," which are mentioned in option B. Option A is incorrect as it mentions "relevant ethical requirements relating to audit engagements," which is not directly related to materiality and risk. Option C is incorrect as it includes "perform the audit," which is not directly related to materiality and risk. Option D is incorrect as it includes only one phrase that is related to materiality and risk, while the question asks for two phrases.

The Auditor's Responsibility Paragraph in the Auditor's Report Includes Two