AUDITING-TEXT (LOOSELEAF)
AUDITING-TEXT (LOOSELEAF)
11th Edition
ISBN: 9781337619462
Author: JOHNSTONE
Publisher: CENGAGE L
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Chapter 7, Problem 12RQSC
To determine

Introduction : Engagement risk refers to the overall risk related to the audit process undertaken for a specific client. There can be a reputational loss in a situation where the auditor faces litigation from investors if the client goes bankrupt. Moreover, a financially weak client can result in financial losses for the auditor.

Todetermine: The effects of engagement risk on audit pricing.

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