Inherent risk is typically assessed at a moderate level for inventory due to the nature of the asset.

Name: Inherent risk is typically assessed at a moderate level for inventory due to the nature of the asset.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

Inventory is a high-risk account due to the nature of the asset, its susceptibility to obsolescence, and the risk of misstatement due to fraud, errors, or theft. Therefore, inherent risk is typically assessed at a high level for inventory, not moderate.

Inherent Risk Is Typically Assessed at a Moderate Level for Inventory