Client business risk is the risk that the audit client will fail to achieve its objectives.

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Client business risk refers to the risk that the audit client may fail to achieve its objectives. It can be caused by various factors such as industry and economic conditions, competition, management decisions, and operational inefficiencies. As auditors are responsible for providing assurance on the financial statements of the client, they need to assess and understand the client's business risks to identify any potential material misstatements.

Client Business Risk Is the Risk That the Audit Client