CA Inter P5 · Chapter 3 · Question 3 of 13
Which of the following is NOT one of the risk assessment procedures listed in SA 315?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) External confirmation of trade receivable balances
Explanation
SA 315 states that risk assessment procedures include inquiries of management and others, analytical procedures, and observation and inspection. External confirmation under SA 505 is generally used as a further audit procedure (substantive test) responding to assessed risks rather than as a risk assessment procedure.
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