3) You have been approached by the financial institutions Databank Financial Services Limited and Blackstar holdings...

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3) You have been approached by the financial institutions Databank Financial Services Limited and Blackstar holdings limited to be their auditors. a. Iterate the factors that can heighten 'engagement risk' as auditors for either of this companies and what kind of information you will require to guide your decision. b. Assuming you consider a risk-based strategy as an effective audit strategy for executing your mandate, what are the probable areas of risk you will focus on and how will you test for them? 3) You have been approached by the financial institutions Databank Financial Services Limited and Blackstar holdings limited to be their auditors. a. Iterate the factors that can heighten 'engagement risk' as auditors for either of this companies and what kind of information you will require to guide your decision. b. Assuming you consider a risk-based strategy as an effective audit strategy for executing your mandate, what are the probable areas of risk you will focus on and how will you test for them?

Answer rating: 100% (QA)

a Factors that can heighten engagement risk as auditors for either of these companies include Complexity of the companys operations and financial stat... View the full answer