Which of the following is performed during the risk assessment phase?
A)Risk and materiality assessment
B)Detailed tests of controls
C)Substantive testing of transactions and accounts
D)Drawing conclusions based upon the evidence gathered

Question

Quizplus · Accepted Answer

During the risk assessment phase, the auditor performs a risk assessment to identify and assess the risks of material misstatement in the financial statements. Therefore, choice A (Risk and materiality assessment) is the best option. Detailed tests of controls, substantive testing of transactions and accounts, and drawing conclusions based upon the evidence gathered typically occur in later phases of the audit process.

Which of the Following Is Performed During the Risk Assessment