Mcq

a Question 9. ISA 315 requires the auditor to identify and assess the risks of material misstatement, through understanding the entity and its environment, to provide a basis for responding to the assessed risks. If the auditor identifies a significant risk, which of the following is a requirement of ISA 315? o obtain an understanding of the control activities relevant to the risk O Design tests of controls on classes of transactions affected by the risk O Include the risk in the management representation letter Plan to perform tests of details on classes of transactions and account balances affected by the risk