The auditor needs to understand the control environment (management and governance):
A) to develop the overall audit plan.
B) to set materiality levels and assess acceptable audit risk.
C) because management's ability to identify and respond to risk affects the risk of material misstatements in the financial report.
D) all of the above

Question

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The Answer of The auditor needs to understand the control environment (management and governance):
A) to develop the overall audit plan.
B) to set materiality levels and assess acceptable audit risk.
C) because management's ability to identify and respond to risk affects the risk of material misstatements in the financial report.
D) all of the above

The Auditor Needs to Understand the Control Environment (Management and Governance)