A risk$-$based auditing approach is deemed to be a top$-$down approach because

Select one:

A$.$ It involves an external review of known potential threats to the organization and then developing an

organizational response to those threats.

B$.$ It involves review of the current financial controls and compliance to regulations as determined by external

auditors.

C$.$ It involves review of each department's dependence on financial controls, compliance with federal statutes and

audit history.

D$.$ It involves identifying and analyzing material risks to the echievement of the organization's objectives and then

determining how the risks should be managed.