How much control does the auditor have over inherent risk?
A)The auditor adjusts the controls that are considered (high level of control).
B)The auditor considers inherent risk for the business as a whole (some control).
C)The auditor assesses the factors that make up inherent risk (no control).
D)The auditor calculates inherent risk values as a residual (no control).

Question

Quizplus · Accepted Answer

Inherent risk is the risk that exists before any control measures are implemented. The auditor can only assess the factors that contribute to inherent risk, but cannot control or adjust it. Therefore, the best choice is C, which states that the auditor assesses the factors that make up inherent risk.

How Much Control Does the Auditor Have Over Inherent Risk