Problem

An auditor assesses the risk of material misstatement because itA. Is relevant to the audi...

An auditor assesses the risk of material misstatement because it

A. Is relevant to the auditor’s understanding of the control environment.

B. Provides assurance that the auditor’s overall materiality levels are appropriate.

C. Indicates to the auditor where inherent risk may be the greatest.

D. Affects the level of detection risk that the auditor may accept.

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