The auditor assesses control risk and inherent risk. On a typical engagement, the auditor would be LEAST likely to assess these for:

Question

Quizplus · Accepted Answer

The auditor would assess control risk and inherent risk for each cycle and each account in order to properly identify and address risks related to specific areas of the financial statements. Assessing these risks on an overall audit level would not provide enough detail for effective risk assessment and audit planning. However, assessing risks for each audit objective may also be necessary depending on the complexity of the engagement.

The Auditor Assesses Control Risk and Inherent Risk