Which two risks are assessed early in the planning stages of the audit?
A) acceptable audit risk and business risk
B) business risk and inherent risk
C) acceptable audit risk and inherent risk
D) none of the above

Question

Quizplus · Accepted Answer

Acceptable audit risk and inherent risk are assessed early in the planning stages of the audit. Acceptable audit risk is the level of risk that the auditor is willing to accept that the financial statements may be materially misstated after the audit has been completed. Inherent risk is the risk of material misstatement of the financial statements before any consideration of the control environment. Business risk and detection risk are assessed later in the audit process.

Which Two Risks Are Assessed Early in the Planning Stages