What is the primary means of dealing with risk in planning decisions related to audit evidence?
A) Selection of more effective tests of details of balances.
B) Application of the audit risk model.
C) Establishing a lower preliminary judgment about materiality.
D) Allocating materiality judgment to segments.

Question

Quizplus · Accepted Answer

The audit risk model is the primary means of dealing with risk in planning decisions related to audit evidence. It helps auditors assess the levels of inherent risk, control risk, and detection risk, and to plan the audit procedures accordingly to achieve an acceptably low level of audit risk.

What Is the Primary Means of Dealing with Risk in Planning