The actual level of audit risk

Can always be accurately assessed by the auditor

Should be greater than or equal to acceptable audit risk

Can never be known with absolute certainty

Is the same for all audit clients

Which of the following would cause you least concern when deciding to accept an audit engagement?

		The potential clients loss of a major customer
		The existence of related party transactions
		A substantial decrease in the price of the potential clients stock
		A trend of decreased cash flow