AUD Prep: The risk of material misstatement (RMM) is defined as: “The risk that the financial statements are materially misstated prior to the audit.” RMM exists at what two (2) LEVELS:

Question

The risk of material misstatement (RMM) is defined as: “The risk that the financial statements are materially misstated prior to the audit.” RMM exists at what two (2) LEVELS:

Monique Tyler · Accepted Answer

1. Overall Financial Statement level 
2. Assertion level for classes of transactions, account balances, and disclosures

AUD Prep

The risk of material misstatement (RMM) is defined as: “The risk that the financial statements are materially misstated prior to the audit.” RMM exists at what two (2) LEVELS:

1. Overall Financial Statement level 2. Assertion level for classes of transactions, account balances, and disclosures

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