IIA-CIA-PART2 · Question #267
Where should internal auditor focus their attention when identify and assessing key risks during the planning stage of an assurance engagement?
The correct answer is D. Inherent risk. During the planning stage of an assurance engagement, internal auditors should focus their attention on identifying and assessing inherent risks. Inherent risk is the risk of a material misstatement or noncompliance due to error or fraud that could occur before any controls are…
Question
Where should internal auditor focus their attention when identify and assessing key risks during the planning stage of an assurance engagement?
Options
- ASampling risk.
- BAudit risk.
- CResidual risk.
- DInherent risk
How the community answered
(35 responses)- B3% (1)
- C3% (1)
- D94% (33)
Explanation
During the planning stage of an assurance engagement, internal auditors should focus their attention on identifying and assessing inherent risks. Inherent risk is the risk of a material misstatement or noncompliance due to error or fraud that could occur before any controls are applied. Understanding inherent risk is crucial as it helps auditors identify areas that may need more extensive testing and ensures that audit resources are appropriately allocated to the highest
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