B is corrent because an auditor should obtain sufficient knowledge of the entity’s risk assessment process to understand how management considers risks relevant to financial reporting objectives and decide about actions to address those risks; that knowledge might include understanding of how management identifies risks, estimates their significance, and assesses the likelihood of their occurrence, and relates them to financial reporting.
A is incorrect because the risk assessment auditors will emphasize that over financial reporting, ordinarily it will not emphasize compliance with marketing objectives.
C is incorrect because the assessment of subsequent events is not necessarily an emphasis of risk assessment policies.
D is incorrect because risk assessment policies will not eliminate all significant risks.
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