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 not directly related to assessing inherent risk. It is important for setting the scope and terms of the engagement, but does not provide information about the client's business or industry, related parties, or physical operations.

Auditors Begin Their Assessments of Inherent Risk During Audit Planning