Which of the following involves gaining an understanding of the client, identifying risk factors, developing an audit strategy, and setting planning materiality?
A)Risk assessment phase
B)Risk response phase
C)Substantive procedures
D)Tests of controls

Question

Quizplus · Accepted Answer

The risk assessment phase involves gaining an understanding of the client, identifying risk factors, developing an audit strategy, and setting planning materiality. The risk response phase involves responding to the identified risks through substantive procedures and tests of controls. Substantive procedures and tests of controls are specific procedures used to gather evidence during the audit.

Which of the Following Involves Gaining an Understanding of the Client