A PA recently finished the audit of a family-owned business. Now she is working on a large client with about 50 times the assets and 30 times total revenue. For the larger client, the PA will likely have
A) no changes to the audit risk model.
B) higher control risk.
C) higher audit risk.
D) lower audit risk.

Question

Quizplus · Accepted Answer

For a larger client, the PA will likely have a lower audit risk because larger clients typically have more robust internal controls and more resources to ensure compliance, reducing the overall audit risk.

A PA Recently Finished the Audit of a Family-Owned Business