Q 4) a) "The auditor shall perform risk assessment procedures to provide a basis for the identification and assessment of risks of material misstatement at the financial statement and assertion levels."

(i) Briefly explain what you understand by the risk of material misstatement at financial statement level.

(ii) List down the risk assessment procedures as referred above.

b) Briefly describe the assertions used by the auditors in respect of the following:

(i) account balances

(ii) classes of transactions