Auditors begin their assessment of inherent risk during the planning phase and update the assessments throughout the audit.

Question

Quizplus · Accepted Answer

Auditors are expected to evaluate inherent risks during the planning phase of an audit and to update their assessment when necessary during the audit. This helps them to identify areas that are more likely to be materially misstated and focus their audit procedures on these high-risk areas.

Auditors Begin Their Assessment of Inherent Risk During the Planning