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Discussion Topic - When performing an audit, auditors are especially concerned about engagement risk. For this reason, they perform main activities to reduce engagement risks. Further, the auditing standards require auditors to understand the client's business, and its environments, and its internal controls when planning the audit so that they could better plan the nature, timing, and extent of the audit.
Required -
1. Discuss why the auditor would be concerned about engagement risk and identify two or more activities the auditors might perform to reduce engagement risk.
2. You should also discuss two ways with examples, about how an auditor could get an understanding of an audit client and its environments, and how this understanding could be used in planning the nature, timing, and extent of the audit.
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