In a Financial Statement Audit, Inherent Risk Is Evaluated to Help

Multiple Choice

In a financial statement audit, inherent risk is evaluated to help an auditor asses which of the following?

A) The internal audit department's objectivity in reporting a material misstatement of a financial statement assertion it detects to the audit committee
B) The risk the internal control system will not detect a material misstatement of a financial statement assertion
C) The risk that the audit procedures implemented will not detect a material misstatement of a financial statement assertion
D) The susceptibility of a financial statement assertion to a material misstatement assuming there are no related controls