The ________ to auditing provides auditors with a clear understanding of possible errors and irregularities and the related risks and exposures.
A)risk-based approach
B)risk-adjusted approach
C)financial audit approach
D)information systems approach

Question

Quizplus · Accepted Answer

The risk-based approach to auditing focuses on identifying and assessing risks associated with financial reporting and other relevant areas of an organization's operations. This approach helps auditors prioritize their audit procedures and resources based on the level of risk, which can increase the effectiveness and efficiency of the audit process. The other options are either too specific (financial audit approach, information systems approach) or do not relate to the concept of risk (risk-adjusted approach).

The ________ to Auditing Provides Auditors with a Clear Understanding