If Inherent Risk Is Considered at the Assertion Level,why Does

question 1

Multiple Choice

If inherent risk is considered at the assertion level,why does the nature of the client's business affect inherent risk?

• A)Certain accounts,such as inventory,are affected by the nature of the client's business.
• B)If the client has very basic manufacturing processes,inherent risk is low.
• C)When there is a risk of technological obsolescence,a specialist must be used during the engagement.
• D)Accounts such as cash,notes,and mortgages payable vary depending upon the type of business.

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