An increase in the risk of material misstatement would lead to which of the following responses?
A)Increase in the extent of audit procedures.
B)Decrease in the extent of audit procedures.
C)Earlier performance of audit procedures.
D)No change in the extent or timing of audit procedures.

Question

Quizplus · Accepted Answer

An increase in the risk of material misstatement would require the auditor to increase the extent of their audit procedures, such as performing additional tests or obtaining more evidence to ensure that any material misstatements are identified and corrected. Decreasing the extent of audit procedures or performing them earlier would not address the increased risk and could result in a failure to detect material misstatements. No change in the extent or timing of audit procedures would also not be appropriate as the increased risk needs to be addressed appropriately.

An Increase in the Risk of Material Misstatement Would Lead