Andy Szypula, the audit manager, was explaining to his new audit team how management assertions work when assessing the risk of material misstatements. He made two statements to
His audit team:
Which of these statements were true?
A) (i) only
B) (ii) only
C) both (i) and (ii)
D) neither (i) nor (ii)

Question

Quizplus · Accepted Answer

Both statements made by Andy Szypula to his audit team regarding management assertions and their role in assessing the risk of material misstatements are considered true in the context of auditing. Management assertions are fundamental to the audit process as they help auditors focus on potential areas where financial statements might be materially misstated. These assertions relate to transactions, account balances, and disclosures, guiding auditors in evaluating the appropriateness of the financial statements.

Andy Szypula, the Audit Manager, Was Explaining to His New