232k views
5 votes
Client continuance-related risks do not include which of the following key types of risk?

a. Client entity characteristics.
b. Quantitative risk factors.
c. Entity organizational or governance risks.
d. All of these are key types of client continuance-related risks.

User Stjohnroe
by
8.2k points

1 Answer

7 votes

Final answer:

All options provided, including client entity characteristics, quantitative risk factors, and entity organizational or governance risks, are key types of client continuance-related risks.

Step-by-step explanation:

Client continuance-related risks generally encompass various types of risks that should be considered by a firm when deciding whether to continue a professional relationship with a client. This includes assessing risks related to the client's entity characteristics, such as its financial stability and industry sector, quantitative risk factors like liquidity ratios and profitability margins, as well as the risks associated with its organizational or governance structures, which could affect the integrity and reliability of the entity.

Answer to the question: All of these are key types of client continuance-related risks. Therefore, it is not accurate to say that one of the options provided does not include key types of client continuance-related risks as all are relevant considerations.

User KLabz
by
7.8k points