Tate CPA firm is completing an attestation engagement for Marjorie Enterprises, a distributor of ples and other pastry products throughout the United States, Canada, and Mexico. One of Tate's partners assigned to the engagement is concerned about how exchange rate fluctuations may affect balance sheet valuations for some accounts such as accounts receivable and payable. A suggested course of action for Tate would be which of the following?

Based on this information, Tate should decrease the risk of material misstatement, and increase audit risk accordingly

Tate should consider focusing audit time on tests of controls to ensure that exchange rate fluctuations are appropriately recorded in the client's financial statements.

Tate should consider employing the services of a valuation specialist to accurately audit exchange rate fluctuations recorded in the client's financial statements.

Tate should advise the client's management that to be on the safe side, the auditors will issue a disclaimer of opinion on receivables and payables to avoid any future litigation.