The auditor should have performed sufficient work to have confidence in the most likely estimate of misstatements in an account balance and that estimate should be used for making materiality judgments.

Question

Quizplus · Accepted Answer

This statement is true. The auditor needs to perform sufficient audit procedures to have reasonable assurance that the financial statements are free from material misstatement. The auditor should use the most likely estimate of misstatement in making their materiality judgments.

The Auditor Should Have Performed Sufficient Work to Have Confidence