Documentation of risk assessment procedures and responses to risks of misstatement should include all of the following except a summary of the identified risks of misstatement. a copy of the client's risk assessment template. the auditor's responses to the risks of material misstatement. the auditor's assessment of risks of material misstatement at the financial statement and assertion levels.

Documentation of risk assessment procedures and responses to risks of misstatement should include all of the following except a summary of the identified risks of misstatement. a copy of the client's risk assessment template. the auditor's responses to the risks of material misstatement. the auditor's assessment of risks of material misstatement at the financial statement and assertion levels.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The auditor’s risk assessment procedures identified severalrisks that the auditor deems to be significant risks. Several internal controls exist thatare designed to mitigate the risks identified. Describe the auditor’s responsibilities forconsidering those controls in the current audit.
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Define audit risk and describe how it can be broken down into the three separate components of the audit risk model to help assess and respond to such risks during the audit planning process.
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