An auditor will identify accounts and related assertions at risk of material misstatement: a. after testing internal controls. b. after writing the audit report. c. to plan the aud... An auditor will identify accounts and related assertions at risk of material misstatement: a. after testing internal controls. b. after writing the audit report. c. to plan the audit to focus on those accounts; d. to eliminate audit risk.
Understand the Problem
The question is asking about the process an auditor follows in identifying accounts and related assertions that may be at risk of material misstatement. The answer options provided suggest different stages or reasons for identifying these accounts.
Answer
c. to plan the audit to focus on those accounts.
The final answer is c. to plan the audit to focus on those accounts.
Answer for screen readers
The final answer is c. to plan the audit to focus on those accounts.
More Information
Auditors identify accounts at risk to strategically focus their audit on areas that may yield significant findings.
Tips
A common mistake is confusing the timing of risk assessment with the actual testing of controls.
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