The concept of inherent risk is most closely tied to the idea of _________.
A)global risk
B)audit risk
C)underlying business risks
D)currency risk

Question

Quizplus · Accepted Answer

Inherent risk is directly related to the underlying business risks that affect the financial statements of an entity. It is the susceptibility of an assertion about a transaction, account balance, or disclosure to a misstatement that could be material, either individually or when aggregated with other misstatements, before consideration of any related controls.

The Concept of Inherent Risk Is Most Closely Tied to the Idea