The First Phase of Audit Planning Is Risk Assessment

question 69

True/False

The first phase of audit planning is risk assessment.

---

Definitions:

Practical Constraints

Limitations arising from real-world conditions that affect the feasibility of a project or action.

Decision Maker

An individual or group responsible for making choices that determine the course of actions in various situations or organizations.

Sunk Cost

Sunk Cost represents money that has already been spent and cannot be recovered, often considered irrelevant to future economic decisions.

Lure of the New

A phenomenon describing the attraction or preference for novel products, technologies, or ideas over those that are more familiar or traditional.