Which of the following is a false statement about risk responses

		Each organization must assess the relationship between the likelihood and significance of risks.
		Identified risks cannot simply be accepted
		Some risks require the creation of elaborate control structures
		There is no direct correlation between the severity of a risk and the cost of the response to that risk.

2 points

QUESTION 2

Which of the following is NOT part of the major phases of the auditing process?

		Client acceptance and continuance
		Audit planning
		Identifying clients revenue and expenses
		Completing audit and formulating the audit report.