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:

Psychoanalysis

A therapeutic method originally developed by Sigmund Freud focusing on exploring unconscious thoughts and feelings to treat psychological disorders.

Aggressive Instincts

Refers to innate or developed tendencies toward hostility or assertiveness in behavior and thought.

Psychoanalysis

A theory and treatment approach founded by Sigmund Freud, focusing on unconscious processes and childhood experiences as key influences on behavior and mental health.

Psychoanalytic Perspective

A theoretical approach in psychology that emphasizes unconscious processes and past experiences, particularly childhood experiences, in shaping behavior and personality.