When the auditor is attempting to determine the extent to which external users rely on a client's financial statements, they may consider several factors except for
A) client size.
B) concentration of ownership.
C) nature and amounts of liabilities.
D) assessment of detection risk.

Question

Quizplus · Accepted Answer

The assessment of detection risk is relevant for the auditor's risk assessment but does not directly relate to the extent to which external users rely on the client's financial statements. The other three factors (client size, concentration of ownership, and nature and amount of liabilities) may affect the reliability and usefulness of the financial statements from the users' perspective, and thus influence their reliance on them.

When the Auditor Is Attempting to Determine the Extent to Which