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when the question is about ethics, professional and quality control and other issues, can we discuss about risk of material misstatement ?
For example, when a question says that an audit assistant has simply looked at the financial statement quickly
Then can i mention in the answer sheet “there are likely to be risk of material misstatement as auditors have not reviewed the financial statement carefully”
Mentioning risk of MM on such professional issue question will be eligible for 1 mark ?
No – ROMM will most likely be examined in planning questions (Q1) and is obviously relevant to completion and reporting questions. Ethics and quality control questions examine other areas of the syllabus (B & C).
ROMM is the combination of of IR and CR – neither of which are affected by audit procedures. It is DR which will be increased if QC procedures are lacking.
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