If the auditor has detected misstatements in prior audits, the assessment of inherent risk for the property management process will usually be set higher.

Question

Quizplus · Accepted Answer

Misstatements detected in prior audits suggest weaknesses in the property management process and the likelihood of errors, leading to an increased inherent risk assessment for the process in future audits.

If the Auditor Has Detected Misstatements in Prior Audits, the Assessment