Inherent risk related to closing procedures would generally be increased when _______.
A)a client is found to have strong closing procedures, and sound internal control practices relating to closing
B)no errors and omissions are located when auditing the closing process
C)staff assigned to deal with closing procedures are relatively inexperienced
D)the closing process is relatively straightforward

Question

Quizplus · Accepted Answer

Inherent risk related to closing procedures would be increased when staff assigned to deal with closing procedures are relatively inexperienced. This is because inexperienced staff may make errors or overlook important steps in the closing process, increasing the risk of material misstatements. The other options would either have no impact on inherent risk or could potentially decrease it.

Inherent Risk Related to Closing Procedures Would Generally Be Increased