When the Risk of Material Misstatement for an Assertion Is

question 16

Multiple Choice

When the risk of material misstatement for an assertion is high, the auditors_______.

• A)must gather less reliable and persuasive evidence
• B)must gather more reliable and persuasive evidence
• C)should not attempt to audit this assertion
• D)should consider allowing the internal audit function to audit this assertion

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Definitions:

Total Cost

The complete cost of production that includes both fixed and variable costs.

Producing

The process of creating goods or services by combining various elements or resources.

Boots

Footwear that covers not only the feet but also the ankles and sometimes extends up to the knees or higher, designed for protection, style, or both.

Pairs

Pairs are sets of two items or entities considered together, often because they are related or function together.