50. An entity's risk assessment process A. should be reevaluated every five years to respond to changing market conditions and threats B. should only solicit feedback from and be crafted by top management C. is its process for identifying and responding to risks that an organization will not achieve its objectives D. is the same as the auditor's consideration of risk 51. In an audit, the purpose of risk assessment is to A. form an ultimate opinion on the financial statements based on management's directives B. assess the combined inherent, control and detection risks to evaluate the likelihood that material misstatements could occur in the financial statements. C. audit the system of internal control only D. ultimately ensure that the internal audit function is performing properly 52. Physical controls are concerned with limiting A. physical access to assets to those authorized to have access B. the informational output of the firm C. investors access to certain records of the firm which should be kept private D. access to accounting information to senior managers only 53. Auditors who are searching for evidence that assets, liabilities, and equity items have been recorded at appropriate amounts and allocated to the correct general ledger accounts consider A. existence B. classification C. valuation and allocation D. rights and obligations