The audit risk model is used primarily
A)for planning purposes in determining how much evidence to accumulate.
B)while doing tests of controls.
C)to determine the type of opinion to express.
D)to evaluate the evidence that has been gathered.

Question

Quizplus · Accepted Answer

The audit risk model is primarily used for planning purposes in determining how much evidence to accumulate. It helps auditors assess the risks that the financial statements contain material misstatements and plan the audit procedures accordingly. The model considers the risks of material misstatements, detection risk, inherent risk, and control risk.

The Audit Risk Model Is Used Primarily