Explain the business risk–based approach to the audit. What is its purpose?
Answer to relevant QuestionsHow does understanding the business’s strategy help the auditor to assess business risk? What are some examples of external and internal business performance measures? How can these performance measures motivate management to misstate the financial statements? What are some examples of management controls? What are the purposes of management controls? What are monitoring controls?How do risks of IT and e-commerce affect the risks of financial statement misstatements?
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