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Many Auditors Take an Approach to Assessing the Risk of Material

question 49

Essay

Many auditors take an approach to assessing the risk of material misstatement by beginning with an assessment of business risks.
a.Define business risks.
b.Why have auditors found it effective to take the approach of assessing business risks?
c.Identify a business risk and explain how it might affect the auditor's audit procedures.


Definitions:

Behavior

The actions or reactions of an individual, in response to external or internal stimuli.

Diversity Competency

The ability to understand, appreciate, and leverage differences among people in a workforce to improve business outcomes.

Lockheed Martin

An American aerospace, defense, arms, security, and advanced technologies company with worldwide interests.

Inclusive Behavior

Actions and practices that make all individuals feel welcomed, respected, and valued within a group or organization.

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