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An auditor assesses the risk of a material misstatement because it: a. is relevant to the auditors understanding of the control environment. b. affects the

An auditor assesses the risk of a material misstatement because it:

a. is relevant to the auditor’s understanding of the control environment.

b. affects the level of detection risk that the auditor may accept.

c. indicates to the auditor where inherent risk may be the greatest.

d. provides assurance that the auditor’s overall materiality levels are appropriate.

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