Which of the following statements in relation to risk assessment at the planning stage of an audit is most correct?

1. Auditors must ensure that risk assessment is performed well in the planning stage of the audit as it cannot be changed as the audit progresses.
2. When performing risk assessment, the auditor needs to understand how the entity plans to achieve its business objectives.

Required: Answer in the space below:

i. Which of the two options (A or B) is correct. it. Why the response selected is correct.

it. Why the response not selected is incorrect.