It is important that the policies,procedures,and key decisions of senior management,the board of directors,and the audit committee be considered when developing a client risk profile because
A)they have a pervasive effect on the company.
B)they influence the most important decisions for the company.
C)it is required by accounting and auditing standards.
D)they have the effect of increasing client business risks.

Question

Quizplus · Accepted Answer

The policies, procedures, and key decisions of senior management, the board of directors, and the audit committee have a pervasive effect on the company, as they set the tone at the top and influence the overall governance and risk management practices of the organization. Therefore, it is important to consider their impact when developing a client risk profile. This is not necessarily required by accounting and auditing standards, nor does it necessarily increase client business risks (in fact, it could help reduce them).

It Is Important That the Policies,procedures,and Key Decisions of Senior