Risk Assessment Flashcards
1
Q
Risk assessment involves considering threats to the
A
organization’s objectives in the areas of operations, financial reporting and compliance with laws and regulations.
2
Q
The auditor should use the risk assessment
A
to determine the nature, timing, and extent of further audit procedures to be performed.
3
Q
Greater risk tends to require
A
more sophisticated techniques performed closer to the balance sheet date by more experienced personnel.
4
Q
To obtain an understanding of the entity and its environment, including its internal control, the auditor should perform each of the following risk assessment procedures
A
Inquiries of management and others within the entity
Observation and inspection.
Analytical procedures.
