4.2 Identifying and assessing the risk of material misstatement

Question 1

Objective of auditor as per SA 315 “Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment”

Answer 1

As per SA 315 the objective of auditor is to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement assertions levels, through the entity and its environment including the entity’s internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement