If Inherent Risk Is Determined to Be High for an Account

question 4

Multiple Choice

If inherent risk is determined to be high for an account or assertion, the next step is to _______.

• A)determine if an internal control is in place to mitigate the risk of a material misstatement
• B)determine if professional skepticism is being used
• C)determine whether management is aware of the risk
• D)perform less extensive detailed substantive tests