to reduce to an appropriately low level the probability that the total of uncorrected and undetected misstatements a monetary amount set by the auditors for a particular test to obtain an appropriate level of assurance Material misstatement of financial statements by management with the intent to mislead financial statement users. Theft Conduct by some enterprises that discharge one independent auditing firm after seeking out another firm that will sanction a disputed accounting principle or financial statement presentation. procedures are designed to identify and assess the risks of material misstatement, whether due to fraud or error