In an Audit, the Purpose of Risk Assessment Is to ________

Multiple Choice

In an audit, the purpose of risk assessment is to ________.

A) form an ultimate opinion on the financial statements based on management's directives
B) assess the combined inherent, control and detection risks to evaluate the likelihood that material misstatements could occur in the financial statements.
C) audit the system of internal control only
D) ultimately ensure that the internal audit function is performing properly