Auditors Begin Their Assessments of Inherent Risk During the Planning

question 76

Multiple Choice

Auditors begin their assessments of inherent risk during the planning phase. Which of the following would NOT be a topic of the planning phase that would also help to assess inherent risk?

• A) Obtaining client's agreement on the engagement letter
• B) Identifying related parties
• C) Obtaining knowledge about the client's business and industry
• D) Touring the client's plant and offices

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Definitions:

Energy Savings

The reduction in the amount of energy used by specific end-use devices and systems, typically without affecting the quality of services provided.

Indoor Environmental Quality

A term referring to the quality of a building's environment in relation to the health and wellbeing of those who occupy space within it, often considering factors like air quality and comfort.

Software Manufacturers

Companies engaged in the development, production, and distribution of software products.

Physical Factors

Environmental elements that can influence the functioning of an organism or system, such as climate, terrain, or availability of resources.