Audit Risk Assessment: The Do's and Don'ts, Part 1

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Whether it's data inaccuracies and omissions, incorrect accounting estimates, or elements that don'tcomply with GAAP, the sources of material misstatements on financial statements are plentiful and common. Auditors who fail to appropriately modify their opinions on materially misstated financial statements pose a serious audit risk. However, those who understand contemporary audit standards as well as the sources of material misstatements can help reduce or eliminate that risk.