Risk in auditing means that the auditor accepts some level of uncertainty in performing the audit function. An effective auditor will
A) take any means available to reduce the risk to the lowest possible level.
B) set the risk level between 5% and 10%.
C) perform the audit procedures first and quantitatively set the risk level before forming an opinion and writing the report.
D) recognize that risks exist and deal with those risks in an appropriate manner.

Question

Quizplus · Accepted Answer

Recognizing that risks exist and dealing with them in an appropriate manner is the best approach. It is impossible to completely eliminate risk in auditing, but an effective auditor will take steps to mitigate risk and ensure the highest possible level of accuracy in their work. Setting a specific risk level or quantitatively determining risk before forming an opinion may not take into account all relevant factors and could lead to inaccurate conclusions. The auditor must use their professional judgment to manage risk appropriately.

Risk in Auditing Means That the Auditor Accepts Some Level