An auditor should assess a client's business risks ________.
A)during the planning stage of the engagement
B)at the end of the engagement after all evidence has been assembled
C)as part of the year-end evidence gathering
D)only if the client requests the auditor to do so in the engagement letter

Question

Quizplus · Accepted Answer

Assessing the client's business risks should be done during the planning stage of the engagement, as it helps the auditor to understand the client's operations, identify areas of potential misstatement, and tailor the audit approach accordingly. Waiting until the end of the engagement or only doing so at the client's request would not be appropriate or effective.

An Auditor Should Assess a Client's Business Risks ________