The Auditor Designs the Risk Assessment Procedures That He Believes

Multiple Choice

The auditor designs the risk assessment procedures that he believes will be effective in assessing the risk of material misstatement for the entity.According to the auditing standards,the risk assessment process should include

A) inquiries of management about the risk of material misstatement due to errors or fraud
B) tests of controls
C) observation of inventory
D) substantive test of transactions