ACCA AA · Chapter 5 · Question 5 of 9
Consider the following procedures: 1. Enquiries of management and others within the entity 2. Analytical procedures 3. Observation and inspection 4. External confirmation Which of these does ISA 315 specify as risk assessment procedures?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 1, 2 and 3
Explanation
ISA 315 states that risk assessment procedures include enquiries of management and others, analytical procedures, and observation and inspection. External confirmation is a further audit procedure used to respond to assessed risks, for example confirming receivables or bank balances, rather than a risk assessment procedure.
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