Auditors begin their assessments of inherent risk during the planning phase.Which of the following would NOT be a topic of the planning phase that would also help to assess inherent risk?
A) identifying related parties
B) touring the client's plant and offices
C) obtaining knowledge about the client's business and industry
D) obtaining client's agreement on the engagement letter

Question

Quizplus · Accepted Answer

Obtaining the client's agreement on the engagement letter is not directly related to assessing inherent risk. It is an important part of the planning phase, but it focuses more on establishing the terms and scope of the engagement, rather than evaluating potential risk factors. A, B, and C all involve gathering information that can help auditors understand the client's operations and environment, which is crucial for identifying inherent risks.

Auditors Begin Their Assessments of Inherent Risk During the Planning