When performing the audit risk assessment, it was determined that the audit risk for GXP’s current-year audit increased from moderate to high. As a result, the auditor should

a. Proceed with the audit in a similar manner to the prior year as this is a recurring engagement and the auditor is familiar with the client.

b. Refuse the mandate for the current year to avoid an audit risk that is too high.

c. Adjust the audit work performed in the current year as compared to the prior year to reduce audit risk to an acceptable level.

d. Accept the engagement only if GXP agrees to a review-level engagement that would reduce the auditor’s liability.