The auditor may properly address the risk associated with an organization that does not demonstrate a commitment to good governance in the all of the following ways except:

Question

Quizplus · Accepted Answer

Charging a higher audit fee without performing increased audit work does not address the risk associated with an organization that does not demonstrate a commitment to good governance. It simply compensates the auditor for the risk but does not mitigate it. The proper ways to address the risk are either not accepting the client or performing more audit work to better manage the financial risk to the auditor.

The Auditor May Properly Address the Risk Associated with an Organization