Question

Which element(s) is/are pervasive to the application of generally accepted auditing standards, particularly the standards of fieldwork and reporting?

A. The elements of materiality and audit risk.

B. The element of internal control.

C. The element of corroborating evidence.

D. The element of reasonable assurance.

Answer 1

The pervasive elements to the application of generally accepted auditing standards, particularly the fieldwork and reporting standards, are the elements of materiality and audit risk.

Step-by-step explanation:

The elements that are pervasive to the application of generally accepted auditing standards, particularly the standards of fieldwork and reporting, include The elements of materiality and audit risk (Option A). These elements are central to the planning, execution, and reporting phases of an audit. Materiality is the threshold above which missing or incorrect information in financial statements is presumed to influence the economic decisions of users; it guides the auditor on what constitutes a significant error or omission in the financial statements. Audit risk is the risk that the auditor might give an inappropriate opinion on the financial statements, suggesting that they present a true and fair view when they do not. Both elements are considered at various stages of the auditing process and affect how auditors approach their work.