n performing interviews and examining documents related to preliminary work in a financial statement audit of a nonissuer, an auditor identifies a business risk associated with plans for a new product line. What should the auditor do as a result?

A$.$ Modity the scope of the engagement to include an analysis of the budget for the new product line and consider the new risk in conjunction with other risks after the budget liems have been analyred.

B$.$ Analyze the newly idertifed risk in conjunction with economic clroumstances related exclusively to the new product line and consider whether there is an immediate consequence for the rus of material misstatement for affected classes of transactions.

C$.$ Modfy the financial statement disclosures to include Pee newly identifed nat $8$ t is lisely that fle new product line will have an adverse effect on the company's protitablity.

D$.$ Analyze the newly identfed mak in corfunction with otter known buirwss nas and consider whether there is an immediate corsequence for the mak of material misstatement at ways levels of the audit.