Consider the following statements and whether they might be true or false. Provide explanations with your answers.

Question:

(a) The directors of the client company sign the audit engagement letter.

(b) The auditor must always discover fraud and other irregularities.

(c) Fees of the auditor are based on the time taken and the grade of staff involved in the assignment.

(d) A business risk approach by auditors is wider than the audit risk approach.

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