An Audit Firm's Business Risk Is Affected By

question 21

Multiple Choice

An audit firm's business risk is affected by:

• A) the client's business risk.
• B) its ability to make profits from the work it performs.
• C) the integrity of client's management.
• D) All of the above.

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Definitions:

Maximize

To increase to the greatest possible amount or degree.

Minimize

To reduce something to the smallest possible level or amount.

Profits

The financial gains obtained when revenues exceed the costs and expenses incurred to operate the business.

Total Costs

The sum of all costs incurred by a business in producing a certain amount of goods or services.