An entity's risk assessment process ________.
A)should be reevaluated every five years to respond to changing market conditions and threats
B)should only solicit feedback from and be crafted by top management
C)is its process for identifying and responding to risks that an organization will not achieve its objectives
D)is the same as the auditor's consideration of risk

Question

Quizplus · Accepted Answer

An entity's risk assessment process is its process for identifying and responding to risks that an organization will not achieve its objectives. It is not necessary to reevaluate it every five years or for it to only be crafted by top management. While an auditor's consideration of risk may be related to the entity's risk assessment process, it is not the same thing.

An Entity's Risk Assessment Process ________