Based upon an assessment of engagement risk the auditor determines an acceptable level of audit risk.

Question

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The auditor determines an acceptable level of audit risk based on an assessment of engagement risk, which includes factors such as the nature of the client's business, the integrity of management, and the complexity of the financial reporting process. This level of audit risk then informs the auditor's overall strategy and approach to the audit.

Based Upon an Assessment of Engagement Risk the Auditor Determines