If, at the planning stage of an audit, the auditor increases the assessed risk of material misstatement, what is the likely effect on the amount of audit evidence that needs to be obtained during the

If, at the planning stage of an audit, the auditor increases the assessed risk of material misstatement, what is the likely effect on the amount of audit evidence that needs to be obtained during the audit?

Answer

1. The amount of evidence required will increase.

2. The amount of evidence required will decrease.

3. It is not possible to determine the effect that this will have on the amount of evidence required.

4. The amount of evidence required will be unchanged.

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