Engagement risk can be eliminated by:
A)establishing policies for client acceptance and continuance.
B)lowering audit risk.
C)lowering materiality.
D)Engagement risk cannot be eliminated.

Question

Quizplus · Accepted Answer

Engagement risk, which is the risk of associating with a particular client or engagement, cannot be completely eliminated because it involves factors beyond the control of the auditor, such as the client's business environment and integrity. Establishing policies for client acceptance and continuance, lowering audit risk, and lowering materiality can help manage and mitigate engagement risk, but they cannot eliminate it entirely.

Engagement Risk Can Be Eliminated By