The audit process has three categories of audit phases: risk assessment, risk response, and reporting. Which of the following are part of the risk assessment process?
A) preplanning, design further audit procedures, tests of control
B) client risk profile, plan the audit, design further audit procedures
C) client acceptance, understand the entity, plan the audit
D) preplanning, plan the audit, design further audit procedures

Question

Quizplus · Accepted Answer

The risk assessment process involves understanding the entity and its environment, including client acceptance and planning the audit.

The Audit Process Has Three Categories of Audit Phases: Risk