Assessing internal controls related to financial instruments may be necessary in order to reduce audit risk to an acceptable level.

Question

Quizplus · Accepted Answer

Assessing internal controls related to financial instruments can help identify potential risks and weaknesses in the company's financial reporting process. By evaluating and improving these controls, auditors can reduce the risk of material misstatements in the financial statements and ensure a more reliable audit opinion. Therefore, assessing internal controls related to financial instruments is necessary to reduce audit risk to an acceptable level.

Assessing Internal Controls Related to Financial Instruments May Be Necessary