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To detect material misstatements in a class of transactions, account balance and disclosure component of the financial statements, the auditor designs _______

User Sybreon
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Final answer:

The auditor designs audit procedures to detect material misstatements in financial statements, using techniques like substantive testing and risk assessment to ensure the accuracy.

Step-by-step explanation:

To detect material misstatements in a class of transactions, account balance, and disclosure component of the financial statements, the auditor designs audit procedures.

These procedures are tailored to identify potential errors or fraud that could have a significant impact on the financial statements. Auditors use various techniques, including substantive testing, risk assessment, and analytical procedures.

The goal is to ensure that the financial statements as a whole are free from material misstatement, whether due to fraud or error, ensuring that they present a true and fair view of the financial position of the entity.

User DerKuchen
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