Nature of Client [4.06] [App B.03] 2. Consider the nature of the entity. a. Document your understanding of the entity, including business operations, investments and investment activities, financing and financing activities, and financial reporting: Enter text b. Document procedures performed to update your understanding: Enter text c. Document changes to your understanding in the current period: Enter text d. Document all risks identified at the assertion level in the risk assessment worksheet. e. Determine whether any of the risks identified are significant risks, one or more of which arises on most audits. Significant risks are those risks that require special audit consideration. In exercising professional judgment to determine whether a risk is a significant risk, you should consider i. the nature of the risk