High there! I'm having a little trouble understanding risk of m/mistatement @ the Financial Statement level.
If I understand correctly, the ROMM @ the assertion level means the possibility of misstatements stemming from x-specific assertion…but what is a specific example at a F/S level?
Also: is the audit risk formula applied for EACH statement's assertion? Like: Revenue has it's own AR formula; Cash has it's own AR formula, etc.
And is there an AR formula that applies to the F/Statements as a WHOLE ?