Auditnrs Di SEC registrants are selected by the at the Inca nf directors: that usually eartsists at from 3 to 5 directnrs that are rtat at the client organization- The auditars must assess the risk at material misstatement at nancial statements d' to the twu types at fraud, and Audit risk at the ace-aunt balance level cansists at three eumpurten'a: [l] _, {2}_ and {s}