Investigation of new clients and re-evaluation of existing ones is an essential part of deciding:
A) acceptable audit risk.
B) financial risk.
C) statistical risk.
D) inherent risk.

Question

Quizplus · Accepted Answer

Investigation of new clients and re-evaluation of existing ones helps auditors determine the acceptable audit risk, which is the risk that the auditor is willing to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued.

Investigation of New Clients and Re-Evaluation of Existing Ones Is