In applying the audit risk model, auditors are concerned about overstatements, not understatements.

Question

Quizplus · Accepted Answer

This statement is false. Auditors are concerned with both overstatements and understatements in financial statements, as they can both have a material impact on the overall fairness and accuracy of the statements. The audit risk model is used to assess and manage the overall risk of material misstatements in the financial statements.

In Applying the Audit Risk Model, Auditors Are Concerned About