Which of the following is an accurate statement regarding the risk assessment process of phase I of the audit process for the sales and collection cycle?
A) Auditors must perform substantive tests related to assertions deemed to have significant risks.
B) The auditor must relate control risk for transaction-related audit objectives to balance-related audit objectives in deciding planned inherent risk.
C) The realizable value balance-related audit objectives are affected by assessed control risk for classes of transactions.
D) All of the above are accurate statements.

Question

Quizplus · Accepted Answer

The risk assessment process of phase I of the audit process for the sales and collection cycle requires auditors to perform substantive tests related to assertions deemed to have significant risks in order to identify any potential misstatements in the financial statements.  Choice B and C are not accurate statements.

Which of the Following Is an Accurate Statement Regarding the Risk