The auditor obtains a sufficient understanding of internal control to assess the risk of material misstatement at the overall financial statement level and at the relevant assertion level.

Question

Quizplus · Accepted Answer

This statement is true. To properly assess the risk of material misstatement, the auditor must obtain a sufficient understanding of the client's internal control system, both at the overall financial statement level and at the relevant assertion level. This allows the auditor to identify any weaknesses or deficiencies in the internal control system that may increase the risk of material misstatement in the financial statements.

The Auditor Obtains a Sufficient Understanding of Internal Control to Assess