Which of the following is least likely to be considered a risk assessment procedure? A)Analytical procedures. B)Inspection of documents. C)Observation of the counting of inventory. D)Observation of the performance of certain accounting procedures.

Question

Quizplus · Accepted Answer

Observation of the counting of inventory is more directly related to the performance of audit procedures aimed at obtaining audit evidence about the existence and condition of inventory, rather than assessing risks. Risk assessment procedures are primarily designed to help auditors understand the entity and its environment, including its internal control, to identify and assess the risks of material misstatement, whether due to fraud or error.

Which of the Following Is Least Likely to Be Considered