When Dealing with Audit Risk

question 30

Multiple Choice

When dealing with audit risk:

• A)audit risk should not be a factor when determining if a new client should be accepted.
• B)audits with a low acceptable audit risk generally result in lower audit fees.
• C)if management of a company has a reputation of integrity, but is also known to take aggressive financial risks, the auditor should not accept the company as a new client.
• D)if the auditor concludes that acceptable audit risk is low, but the client is still acceptable, the auditor may still accept the engagement but increase the audit fee.

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The Food and Drug Administration, an agency within the U.S. Department of Health and Human Services responsible for ensuring the safety and efficacy of human and veterinary drugs, biological products, medical devices, food, cosmetics, and products that emit radiation.

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