Which of the following is the first step in the risk-based audit approach?
A)identify the control procedures that should be in place
B)evaluate the control procedures
C)determine the threats facing the AIS
D)evaluate weaknesses to determine their effect on the audit procedures

Question

Quizplus · Accepted Answer

The first step in the risk-based audit approach is to determine the threats facing the AIS. This involves identifying and evaluating the various risks that could affect the organization's financial statements and determine the likelihood and potential impact of those risks. Only after identifying the risks can the auditor determine which control procedures should be in place and evaluate them, as well as evaluate weaknesses in the system and how they may affect the audit procedures.

Which of the Following Is the First Step in the Risk-Based