The first step in the financial statement audit using a risk assessment approach is to
A) identify risks of material misstatement.
B) gather evidence to assess the likelihood of material misstatement.
C) evaluate audit evidence.
D) evaluate the reporting framework.

Question

Quizplus · Accepted Answer

The first step in the financial statement audit using a risk assessment approach is to identify risks of material misstatement. This involves understanding the entity and its environment, assessing the entity's internal control, and identifying specific risks that may result in material misstatements in the financial statements.

The First Step in the Financial Statement Audit Using a Risk