An Auditor Has Accessed Client Business Risk and the Risk

Multiple Choice

An auditor has accessed client business risk and the risk to material misstatements to the clients financial statements. These are done in order to:

A) apply the audit risk model in determining the appropriate audit procedures to perform.
B) determine the reliance on the company's internal control systems for financial reporting.
C) determine the test of balances to be performed by the audit team.
D) assure the CPA firm that they can perform the audit effectively and efficiently,