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

The risk that the assertion contains material misstatements that, when aggregated with misstatements in other assertions, could make the entire financial statements materially misstated is:Select one:a.Inherent riskb.Detection riskc.Individual audit riskd.Control risk

According to PSA 400 - Risk Assessments and Internal Control, audit risk meansSelect one:a.The risk that an auditor's substantive procedures will not detect a misstatement that exists in an account balance or class of transactions that could be material, individually or when aggregated with misstatements in other balances or classes.b.The risk that the auditor gives an inappropriate audit opinion when the financial statements are materially misstated.c.The risk that a misstatement, that could occur in an account balance or class of transactions and that could be material, individually or when aggregated with misstatements in other balances or classes, will not be prevented or detected and corrected on a timely basis by the accounting and internal control systems.d.The susceptibility of an account balance or class of transactions to misstatement that could be material, individually or when aggregated with misstatements in other balances or classes, assuming that there were no related internal controls.Clear my choice

This risk may be reduced to an acceptable level through the risk-based approach to auditing:identifying and assessing risks of material misstatement at the financial statement and assertion levels (ISA 315);designing and performing audit procedures to obtain sufficient appropriate audit evidence to draw reasonable conclusions on which to base the audit opinion (ISA 330).

Describe the audit risks in the financial statements and explain the auditor's response to each risk.

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