Auditors need to consider the risk and take appropriate actions relating to material misstatements of fact contained in the client's MD&A section of the 10-K filed with the SEC.

Question

Quizplus · Accepted Answer

Auditors are required to consider the risk of material misstatements of fact in all financial statements, including the MD&A section, and take appropriate actions to address them. This is in accordance with auditing standards and SEC regulations.

Auditors Need to Consider the Risk and Take Appropriate Actions