Theoretically,when assessing the inherent risk related to an account balance,an auditor does not explicitly consider the ________.
A)susceptibility of the account to theft
B)management estimates involved in determining the account balance
C)internal control policies and procedures
D)complexity of calculations involved

Question

Quizplus · Accepted Answer

Inherent risk assessment focuses on the susceptibility of an account to misstatement before considering the effectiveness of internal controls. Therefore, internal control policies and procedures are not explicitly considered in this phase; they are evaluated when assessing control risk.

Theoretically,when Assessing the Inherent Risk Related to an Account Balance,an