A well- designed system of management risk assessment is likely to help management identify the:
A) risks of ineffective audit procedures.
B) risks of making a loss for the year.
C) risks of being over- audited.
D) risks relevant to the preparation of appropriate financial statements.

Question

Quizplus · Accepted Answer

A well-designed system of management risk assessment is likely to help management identify the risks relevant to the preparation of appropriate financial statements. It focuses on the identification of risks and the implementation of controls to prevent and manage those risks. The other options are not directly related to financial statement preparation or risk assessment.

A Well- Designed System of Management Risk Assessment Is Likely