Which of the Following Items Is Not an Important Consideration

Multiple Choice

Which of the following items is not an important consideration in an auditor's evaluation of an entity's business risk?

A) The specific business risks that an entity faces may result in financial report errors and fraud.
B) Business risk factors affect the ability of an entity to be profitable and survive.
C) Auditing standards include many entity business risk factors that identify circumstances that increase the likelihood of material misstatements.
D) Auditing standards require the auditor to evaluate the entity's business risk in order to provide suggestions to improve the entity's profitability.