The audit risk model is:
A) useful when performing the tests of balances, but of little value in either the planning or evaluation stages.
B) useful in evaluating results but of limited use in planning.
C) useful in planning but of limited use in evaluating results.
D) a planning, testing, and evaluation model.

Question

Quizplus · Accepted Answer

The audit risk model is primarily used in planning the audit by helping the auditor determine the level of evidence needed to reduce audit risk to an acceptable level. While it can also be useful in evaluating results, its main purpose is in the planning stage. Therefore, choice C is the best answer.

The Audit Risk Model Is