Performance of audit procedures at an interim date causes the risk of material misstatement occurring between the interim date and the end of the year to
A)decrease.
B)increase.
C)remain the same.
D)become more difficult to ascertain.

Question

Quizplus · Accepted Answer

Performing audit procedures at an interim date may provide some assurance about the financial statements at that point in time, but it does not necessarily address the risk of material misstatement occurring between the interim date and the end of the year. This risk may increase due to changes in the business or economic environment, new transactions or events, or other factors. Therefore, auditors need to perform additional procedures near the end of the year to address this risk and obtain sufficient evidence to support the opinion on the financial statements as a whole.

Performance of Audit Procedures at an Interim Date Causes the Risk