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

Select one:

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

B$.$ It involves identifying and analyzing material risks to the achievement of the organization's objectives and then determining how the risks should be managed. $$

C$.$ It involves an external review of known potential threats to the organization and then developing an organizational response to those threats. $$

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