When determining the inherent risk related to an account balance,an auditor theoretically does not explicitly consider the
A) Liquidity of the account.
B) Degree of management estimation involved in determining the proper account balance.
C) Related internal control policies and procedures.
D) Complexity of calculations involved.

Question

Quizplus · Accepted Answer

Inherent risk is the susceptibility of an account balance to misstatement, assuming no related internal controls. Therefore, internal control policies and procedures are not considered when assessing inherent risk.

When Determining the Inherent Risk Related to an Account Balance,an