An Audit Team Uses the Assessed Risk of Material Misstatement

Multiple Choice

An audit team uses the assessed risk of material misstatement to

A) Evaluate the effectiveness of the entity's internal control policies and activities.
B) Identify transactions and account balances where inherent risk is at the maximum.
C) Indicate whether materiality thresholds for planning and evaluation purposes are sufficiently high.
D) Determine the acceptable level of detection risk for financial statement assertions.