If auditors determine that there is not a significant risk of material improper revenue recognition, no documentation of this decision is required.

Question

Quizplus · Accepted Answer

Even if auditors determine that there is not a significant risk of material improper revenue recognition, they still need to document their decision-making process and the basis for their conclusion in the audit documentation, according to auditing standards. This documentation is necessary to support the auditor's work and to demonstrate compliance with professional standards.

If Auditors Determine That There Is Not a Significant Risk