The auditor shall consider whether information obtained from the auditor's client acceptance or continuance process is not relevant to identifying risks of material misstatement.Select one:TrueFalse

The auditor must identify and assess the risk of material misstatement in the financial statements. Where control activities are at the service organisation, the user auditor must still evaluate their design and determine whether they have been implemented.

Risks of material misstatement at the financial statement level refer to risks that relate to the inherent limitation of audit of financial statements.Select one:TrueFalse

Materiality is one of the factors considered by the auditor when determining the nature, timing and extent of audit procedures and evaluating the effect of misstatements.Group of answer choicesTrueFalse

Which is not true of the following statements?Group of answer choicesDiscovery of fraudulent transactions depends on the preparation and skill of the auditorsThe risk of the auditor not detecting a material misstatement resulting from management fraud is greater than for employee fraud,The discovery of a material misstatement of the financial statements resulting from fraud does not, in itself, indicate a failure tocomply with PSAsThe risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatementresulting from error

The auditor has a responsibility of identifying or assessing all business risks because not all business risks give rise to risks of material misstatement.Select one:TrueFalse