While performing a follow-up of a concern about equipment-inventory tracking, which course of action is not necessary for the auditor to take?
While performing a follow-up of a concern about equipment-inventory tracking, which course of action is not necessary for the auditor to take?
Ensuring that the inherent risk has been eliminated as a result of resolving the issue is not necessary because inherent risk cannot be completely eliminated. Inherent risk is the natural level of risk that exists in a process or activity before any controls are applied. The auditor's role is to ensure that appropriate controls are implemented to mitigate the risk, not to eliminate it entirely.
Ensure that inherent risk has been eliminated? inherent risk = 0? sounds wrong, doesn't it?
Yes, internal audit activity never can eliminate the inherent risks.
inherent risk can never be eliminated