Based upon the risk of misstatement,the auditor uses judgment to determine which balances and transactions should be tested in the financial statements.

Question

Quizplus · Accepted Answer

This statement is true. The auditor's risk assessment process includes identifying areas of higher risk of misstatement, which informs their decision of which balances and transactions to test during the audit.

Based Upon the Risk of Misstatement,the Auditor Uses Judgment to Determine