alleryStart learning →A risk-based approach to audit seeks to identify what first?
ARisks of greatest impact
BEvery single transaction
CThe cheapest tests to run
DPast auditor mistakes
Answer & Solution
Correct answer: A. Risks of greatest impact
Risk-based auditing targets risks with the greatest potential impact rather than checking every transaction.
Keep practising Risk Assessment and Internal Control
Browse all Risk Assessment and Internal Control questions for CA Final, or explore more Auditing topics.
Related questions
Which is correct about auditors and internal control?The COSO risk assessment component involves what?A payables system matches order, receipt and invoice before paying. Which objective?Maintaining documentation to substantiate transactions is which control activity?Why did the IASB decline a uniform numeric materiality threshold?Materiality is reassessed at the conclusion of the audit before the report is issued. WhatWhat is the purpose of setting performance materiality?Which expression gives audit risk in the audit risk model?