The Auditor Is Required to Document His Response to the Assessed

question 107

Multiple Choice

The auditor is required to document his response to the assessed risk of material misstatement.This documentation should include

• A)the results of audit procedures,including the analytical procedures designed to address the risk of management override of internal controls
• B)the overall response to the assessed risk of material misstatement due to fraud at the financial statement level and the nature,timing,and extent of audit procedures at the assertion level and a linkage between the audit procedures and the assessed risk of material misstatement
• C)other conditions and analytical procedures that cause the auditor to believe that additional auditing procedures were appropriate to address the risk of material misstatement due to fraud
• D)the significant decisions during the discussion among management regarding the susceptibility of the company's financial statements to material misstatement due to fraud
• E)the identified and assessed risks of material misstatement at both the financial statement level,and the procedures performed to obtain the information
• F)both A and B
• G)both B and C
• H)both C and D

---

Definitions:

Sample Space

The set of all possible outcomes in a probability experiment.

Probability

A measure of the likelihood of a particular event or outcome in a set of possible events, typically expressed as a ratio between 0 and 1.

Air Quality Standards

Regulations set by governments to control the levels of pollutants in the air, ensuring it is safe to breathe and protective of public health and the environment.

Air Pollution

The presence of harmful substances in the air, often resulting from human activities, that can harm health and the environment.