The two major factors affecting acceptable audit risk are:
A)inherent risk and the intended uses of the financial statements.
B)control risk and the intended uses of the financial statements.
C)the likely statement users and the intended uses of the statements.
D)the audit firm and the intended uses of the statements

Question

Quizplus · Accepted Answer

The two major factors affecting acceptable audit risk are the likely statement users and the intended uses of the statements, as these determine the level of assurance needed and the potential consequences of audit failure.

The Two Major Factors Affecting Acceptable Audit Risk Are