Which of the following is associated with obtaining an understanding of the client and its environment?

	a.	Client acceptance and continuance
	b.	General information, industry, regulatory and external factors
	c.	Linking audit procedures to identified risks
	d.	Determining planning materiality

What is necessary for the substantive audit procedures to be appropriately linked to assessed risks?

	a.	The client's specific risk needs to be considered when planning the audit.
	b.	Industry-specific risks need to be the primary determination when deciding on testing.
	c.	Audit procedures should be set before specific risks are determined to make sure all areas are tested.
	d.	The aspect of linking is of secondary importance provided the auditor does comprehensive testing of all areas of possible risk.