The auditor assesses inherent risk for accounts receivable, considering client risk and the nature of the audit client and the nature of the industry which the client is operating in.

Question

Quizplus · Accepted Answer

This statement is true. The auditor does assess inherent risk for accounts receivable, taking into account various factors including client risk and the characteristics of the company and industry in which it operates.

The Auditor Assesses Inherent Risk for Accounts Receivable, Considering Client