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When assessing the risk of material misstatements in the financial statements, (a) the auditor must have an understanding of the client's business and industry. (b)

When assessing the risk of material misstatements in the financial statements,

(a)

the auditor must have an understanding of the client's business and industry.

(b) company management is responsible for determining materiality levels.

(c) inadequate internal control procedures will mitigate client business risk.

(d) GAAS specifies in detail how much and what types of evidence the auditor needs to obtain.

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