Which of the following is not a primary reason for obtaining a good understanding of the client's industry and external environment?
A)Risk associated with a specific industry may affect the auditor's assessment of client business risk.
B)Risk associated with a specific industry may affect the auditor's assessment of acceptable audit risk.
C)Risk associated with a specific industry may affect the auditor's assessment of acceptable control risk.
D)Many control risks are common to all clients in certain industries.

Question

Quizplus · Accepted Answer

Understanding the client's industry and external environment primarily affects the assessment of business and audit risks, not directly the control risk, which is more related to the client's internal processes and controls.

Which of the Following Is Not a Primary Reason for Obtaining