Which characteristic of risk assessment makes it a useful tool for audit planning?
Which characteristic of risk assessment makes it a useful tool for audit planning?
Risk assessment is a systematic process for identifying and analyzing potentially adverse effects, which is essential for effective audit planning. By understanding and analyzing risks, auditors can prioritize areas that may have significant impacts on the organization, ensuring that audit efforts are focused on the most critical areas. This makes risk assessment a valuable tool in planning audits efficiently and effectively.
Could someone tell me why not B? Thanks
I think risk assessment is the process used by people to rank the risk. The process itself could not rank the risk.