Auditors begin their assessments of inherent risk during audit planning. Which of the following would not help in assessing inherent risk during the planning phase?
A) obtaining client's agreement on the engagement letter
B) obtaining knowledge about the client's business and industry
C) touring the client's plant and offices
D) identifying related parties

Question

Quizplus · Accepted Answer

Obtaining client's agreement on the engagement letter is important for setting the scope of the audit and the responsibilities of each party, but it does not provide any information about the inherent risks of the client's business. B, C, and D would provide relevant information about the client's business and industry, physical operations, and relationships that could impact the inherent risk of the audit.

Auditors Begin Their Assessments of Inherent Risk During Audit Planning