17) Risk assessment procedures include

A) assessing acceptable audit risk.

B) determination of the type of audit opinion to issue.

C) a required discussion among the staff members of the audit and the client regarding material misstatements in the financial statement.

D) observation of the entity's operations.

18) Which of the following is not a primary consideration when assessing inherent risk?

A) susceptibility to misappropriation of assets

B) nature of client's business

C) existence of related parties

D) effectiveness of internal controls

19) Which of the following questions is the auditor not required to ask company management when assessing fraud risk? A) What is the nature of the fraud risks identified by management?

B) Is management using all assets effectively?

C) What internal controls have been implemented to address the fraud risks?

D) Does management have knowledge of any fraud or suspected fraud within the company?