Which of the following is not a primary consideration when assessing inherent risk?
A) nature of client's business
B) existence of related parties
C) degree of separation of duties
D) susceptibility to defalcation

Question

Quizplus · Accepted Answer

The degree of separation of duties is actually a factor that should be considered when assessing control risk, not inherent risk. The nature of client's business, existence of related parties, and susceptibility to defalcation are all primary considerations when assessing inherent risk.

Which of the Following Is Not a Primary Consideration When