Which of the following statements is true regarding the risk assessment component of internal control?

By: Answerout


Here is the solution for Which of the following statements is true regarding the risk assessment component of internal control?. The solution is given after the options.

Which of the following statements is true regarding the risk assessment component of internal control?

An auditor evaluates an entity’s risk assessment because it is a component of overall audit risk in a financial statement audit.

An auditor’s evaluation of an entity’s risk assessment may not be applicable to the audit of every entity.

An auditor evaluates an entity’s risk assessment to understand how management addresses risks relevant to financial reporting.

An auditor need not consider an entity’s risk assessment because he or she is primarily concerned with audit risk in a financial statement audit.

Correct Answer

An auditor evaluates an entity’s risk assessment to understand how management addresses risks relevant to financial reporting.

Explanation:

An auditor evaluates an entity’s risk assessment to understand how management addresses risks relevant to financial reporting. is the answer for Which of the following statements is true regarding the risk assessment component of internal control?

Conclusion:

are provided by Answerout to teach the newcomers in the Digital Marketing Industry. The answers provided are 100% correct and are solved by Professionals. We don’t and never have recommended using these answers as a cheat sheet. We keep updating our answers as the Exam Change. You can also send us an Email or Comment to notify us of any support or Changes.

comments
leave comment