A strategic and risk-based audit approach means that the client must be assessed in the context of the business environment,including which of the following?
A)ensuring that accounting complies with IFRS or ASPE
B)completion of an independence threat analysis with supporting documentation
C)corporate governance process and quality of internal controls
D)talking to those audit committee members who are also part of management

Question

Quizplus · Accepted Answer

A strategic and risk-based audit approach requires an evaluation of the client's corporate governance process and internal controls to identify potential risks and to develop a plan for addressing them. Adherence to accounting standards, completion of an independence threat analysis, and talking to audit committee members who are also part of management are important components of the audit process, but they are not part of the assessment of the business environment.

A Strategic and Risk-Based Audit Approach Means That the Client