MC Qu. 01 The existence of audit risk is... The existence of audit risk is best recognized by the statement in the standard auditor's report that the Multiple Choice O Auditor must exercise professional judgment and maintain professional skepticism. Auditor obtains reasonable assurance about whether the financial statements are free of material misstatement. Auditor is responsible for identifying and assessing the risks of material misstatement of the financial statements due to error Auditor is responsible for issuing an auditor's report that includes the auditor's opinion on the financial statements, which are th