Question

Which of the following elements underlies the application of generally accepted auditing standards, particularly the standards of fieldwork and reporting?

A Adequate disclosure.
B Quality control.
C Materiality and audit risk
D Client acceptance

Answer 1

The element of C Materiality and audit risk underlies the application of generally accepted auditing standards. Materiality and audit risk inform the auditor's procedures and reporting decisions. option c is answer

Step-by-step explanation:

The element that underlies the application of generally accepted auditing standards, particularly the standards of fieldwork and reporting, is C Materiality and audit risk. Materiality pertains to the significance or importance of an amount, transaction, or discrepancy.

Audit risk refers to the risk that the auditor may unknowingly fail to appropriately modify their opinion on financial statements that are materially misstated. Together, these concepts are fundamental in determining the nature, timing, and extent of auditing procedures. They also influence how auditors report on the financial statements they are auditing. option c is answer