Which of the following is not a primary consideration when assessing inherent risk?
A) Susceptibility to misappropriation of funds.
B) Existence of related parties.
C) Frequency and intensity of management's review of accounting transactions and records.
D) Nature of client's business.

Question

Quizplus · Accepted Answer

Inherent risk assessment focuses on the susceptibility of an account balance or class of transactions to misstatements that could be material, either individually or when aggregated with misstatements in other balances or classes, without considering internal controls. The frequency and intensity of management's review of accounting transactions and records is more related to control risk than inherent risk.

Which of the Following Is Not a Primary Consideration When