The risk response phase of an audit involves:
A)The assessment of the audit firm's quality control procedures.
B)Gaining an understanding of the client.
C)Evaluating the results of the detailed testing and forming an opinion on the truth and fairness of the client's financial report.
D)The performance of detailed tests of controls and substantive testing of transactions and accounts.

Question

Quizplus · Accepted Answer

The risk response phase of an audit involves the performance of detailed tests of controls and substantive testing of transactions and accounts in order to identify and evaluate risks of material misstatement in the client's financial report. Choices A and B refer to the initial planning phase of an audit, while choice C refers to the conclusion phase.

The Risk Response Phase of an Audit Involves