In what order should the following steps occur?
A.Assess client business risk
B.Understand the client's business and industry
C.Perform preliminary analytical procedures
D.Assess acceptable audit risk
A)D, B, C, A
B)B, A, C, D
C)B, D, A, C
D)D, C, B, A

Question

Quizplus · Accepted Answer

Before performing any procedures, it is important to understand the client's business and industry (step B). Then, the auditor should assess acceptable audit risk (step D) before performing preliminary analytical procedures (step C) and assessing client business risk (step A).

In What Order Should the Following Steps Occur