When dealing with audit risk:
A)auditors accept some level of risk in performing the audit function.
B)most risks that auditors encounter are relatively easy to measure.
C)the audit risk model is only used for classes of transactions.
D)most audit firms prefer to use a quantitative assessment for risk.

Question

Quizplus · Accepted Answer

Auditors accept some level of risk in performing the audit function as it is not possible to completely eliminate all risks. The audit risk model is used to assess overall audit risk, which includes inherent risk, control risk, and detection risk, for all aspects of the financial statements, not just classes of transactions. Audit firms may use both quantitative and qualitative assessments for risk, depending on the situation.

When Dealing with Audit Risk