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HarryHarry asked 2 years ago
1 Answers
RaviRavi Staff answered 2 years ago

While commencing the statutory audit of ABC Company Limited, (Part 1)what should be the considerations of the auditor to assess Risk of Material Misstatement” and his (Part 2) response to such risks?
From above it is clear that they are asking 2 things 
1st Part —  Assessing RMM, which they have explained in 4 points, these are explained on our notes with heading “Identifying & Assessing Risk”
Now the 2nd Part — They are not asking response for financial statement level risk. they are asking just response for RMM — They have have explained matters to be considered while deciding the response and explained 4 points —
1. Understand Reason Why there is RMM ?
2. Likelihood of MMST
3.  Relevant Controls & Testing
4. More Risk More Persuasive Evidence

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