Risk in auditing means that the auditor accepts some level of uncertainty in performing the audit function.An effective auditor will:
A) set the risk level between 5% and 10%.
B) take any means available to reduce the risk to the lowest possible level.
C) recognise that risks exist and deal with those risks in an appropriate manner.
D) perform the audit procedures first and quantitatively set the risk level before forming an opinion and writing the report.

Question

Quizplus · Accepted Answer

Recognizing that risks exist and dealing with them in an appropriate manner is the best choice. Risk cannot be eliminated entirely, and a good auditor understands this and takes steps to mitigate it appropriately. The other options are not effective approaches to managing risk in auditing.

Risk in Auditing Means That the Auditor Accepts Some Level