To identify the risk of material misstatement,the auditor considers material misstatements at
A)the financial reporting level
B)the relevant assertion level
C)the inherent risk level
D)the control risk level

Question

Quizplus · Accepted Answer

The auditor considers material misstatements at the relevant assertion level to identify the risk of material misstatement. This is because material misstatements are typically caused by errors or fraud in specific assertions related to account balances, transactions, or disclosures, rather than at the overall financial reporting level. By assessing the risk of material misstatement at the relevant assertion level, the auditor is able to identify the specific risks that may cause material misstatements and design appropriate audit procedures to address those risks.

To Identify the Risk of Material Misstatement,the Auditor Considers Material