Question: When planning a financial statement audit, a CPA must understand audit risk and its components. For the following example, select the component of audit risk
When planning a financial statement audit, a CPA must understand audit risk and its components. For the following example, select the component of audit risk per the audit risk model described in the auditing standards that is most directly illustrated.
EXAMPLE: Technological developments in the client's industry may render the client's inventory obsolete.
Group of answer choices
Client Business risk
Inherent risk
Detection risk
Engagement risk
Control risk
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