What Best Describes the Concept of Risk Assessment That Currently

Multiple Choice

What best describes the concept of risk assessment that currently underpins the auditing standards?

A) The risk that the financial report is misstated as a result of weaknesses in internal control.
B) The risk that the financial report is misstated because of fraud.
C) Developing client acceptance and continuance practices that minimise the likelihood of lawsuits against the auditor.
D) Whether management has systems in place to evaluate and effectively manage the entity's business risks.