Yes, any accounts that have one or more YES answers in the table should be assessed as medium or high inherent risk.
This is because these accounts are inherently more susceptible to errors, fraud, or misstatements due to their inherent characteristics. The presence of one or more YES answers indicates that the account has a higher inherent risk of material misstatement.
Therefore, assessment of inherent risk is an important part of the audit planning process. By identifying accounts with high inherent risk, auditors can focus their attention on these areas and develop more effective audit procedures.
ceanview Marine Company Assessment of Inherent Risk December 31, 2018 YES or NO Complexor Susceptible to mon-routine theft or transactions manipulation or calculations A Taberei Account balance based on estimates Largesember of transacties Modium,ன Low N M у M Cash Accounts Receivable Allowance for Doubtful Acets Inventory Prepaid Expenses Property, Plant, & Equipment Accounts Payable Accrued Liabilities M N N N Notes Payable N N N N Taxes Payable N M Long-term Debt M N N V Other Liabilities N N N N Common Stock N M N N E ION N M N N 2 N Y M Y H Owners' Equity Revenue Expenses (excluding items below) Bad debt expense Depreciation M N N У N N N M Y N N N M * Any accounts that have one or more YES answers should be assessed as medium or high inherent risk. If not explain why Includes significant concerns about the account balance's net realizable value and should be answered yes only if estimated amounts are significant 1 Current workpopers -- audit planning + Page 30