Question: 2) Risk assessment procedures include A) a required discussion among the staff members of the audit and the client regarding material misstatements in the financial

2) Risk assessment procedures include A) a required discussion among the staff members of the audit and the client regarding material misstatements in the financial statement. B) determination of the type of audit opinion to issue. C) observation of the entity's operations. D) assessing acceptable audit risk.

Answer: C

Hi can you explain why the answer is C? I know observation is included in the procedures, but I also thought that calculating the audit risk was also apart of the risk assessment procedures?

If it is not then what would the Audit risk be apart of? or is it it's own thing or what would it's purpose be?

Thank you!

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