@cd wolf – LEVELS (AU-C 315) section .A108 all the way through .A124
Financial statement level – that's when you the auditor is trying to determine what audit risk managements financial statements as a whole presents, such as management override, management being incompetent, and then trying to come up with ways to minimizing that risk by: 1: maintaining skepticism 2: using experienced staff 3: increasing the level of supervision of audit staff 4: having more unpredictable audit procedures. You the auditor are looking at management's financial statements as a WHOLE – in totality.
Relevent assertion level – that's when you the auditor is specially looking at certain areas within managements financial statements such as account balances, classes of transactions, and disclosures. That's when you start auditing what management said about their own financial statements such as completeness, occurrence, cuttoff, accuracy, classification an other assertions
TIP – when reading MC questions, use the word I in place of auditor – see yourself as the person asking the question. Ex:
An auditor would most likely modify an unmodified opinion when………..
I would most likely modify an unmodified opinion when…………
.