Which of the following are true with respect to the risk assessment stage of the audit? select
Question:
Which of the following are true with respect to the risk assessment stage of the audit? select all that will apply
A. Understanding the entity should be performed before the engagement is accepted to ensure fee quotes are reasonable and based on the audit time required.
B. Auditors need to do extensive work on related party transactions because when they exist, it means there must be fraud.
C. The risk assessment phase involves gaining an understanding of the client, identifying risk factors, developing an audit strategy, and determining materiality.
D. The risk assessment phase allows the auditor to plan an efficient audit.
E. Risk assessment procedures include inquiry of management, analytical procedures, observation and inspection, and looking at specific transactions that significantly impact the financial statements.
F. The auditor is responsible for finding fraud.
G. The auditor is responsible for assessing the going concern of the entity.
Expert Answer:
The risk assessment stage of the audit includes the auditor gaining an understandin... View the full answer
