1. In order to assess the risk of material misstatement of the financial statements whether due to error or fraud, the auditor needs to obtain a sufficient understanding of the entity, the client's environment, and the client's internal control. True False QUESTION 14 1. Risk assessment procedures are required in every audit. True False QUESTION 15 When an auditing pronouncement states that the auditor "should" perform a particular procedure, there is an unconditional requirement that the auditor comply with the practice standard. True CE False QUESTION 16 The risk of material misstatement is a combination of inherent risk and detection risk. C True False