AUDIT QUESTION

Among methods used by auditors in gathering evidence, what are risk assessment procedures?

a. Methods designed to detect material misstatements at the assertion level.

b. Methods used to determine the operating effectiveness of the clients controls in preventing, or detecting and correcting, material misstatements at the assertion level.

c. Methods used in the evaluation of financial information by studying plausible relationships between both financial and non-financial data.

d. Methods used to gain an understanding of a client and its industry for the purpose of identifying risk of material misstatement.