When Assessing the Risk of Material Misstatements in the Financial

question 29

Multiple Choice

When assessing the risk of material misstatements in the financial statements,

• A)inadequate internal control procedures will mitigate client business risk.
• B)GAAS specifies in detail how much and what types of evidence the auditor needs to obtain.
• C)company management is responsible for determining materiality levels.
• D)the auditor must have an understanding of the client's business and industry.

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