Auditors Begin Their Assessments of Inherent Risk During the Planning

question 20

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) identifying related parties
• B) touring the client's plant and offices
• C) obtaining knowledge about the client's business and industry
• D) obtaining client's agreement on the engagement letter

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Definitions:

Late Childhood

A developmental stage typically ranging from about 6 to 12 years of age, marked by significant growth in cognitive, emotional, and social skills.

Mass Psychogenic Illnesses

The rapid spread of illness signs and symptoms among a group of people, where there is no identifiable physical or environmental cause, often due to psychological factors.

Social Media

Platforms and websites that enable users to create and share content or to participate in social networking.

Conversion Disorder

A mental condition in which a person has blindness, paralysis, or other neurologic symptoms that cannot be explained by medical evaluation.