proached by the financial institutions Databank  Financial Services Limited and Blackstar holdings limited to be their  auditors.  a. Iterate the factors that can heighten ‘engagement risk’ as auditors  for either of this companies and what kind of information you  will require to guide your decision.  b. Assuming you consider a risk-based strategy as an effective audit  strategy for executing your mandate, what are the probable

Contemporary Auditing
11th Edition
ISBN:9781337650380
Author:KNAPP
Publisher:KNAPP
Chapter5: Ethical Responsibilities Of Independent Auditors
Section5.1: Cardillo Travel Systems, Inc.
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) You have been approached by the financial institutions Databank 
Financial Services Limited and Blackstar holdings limited to be their 
auditors. 
a. Iterate the factors that can heighten ‘engagement risk’ as auditors 
for either of this companies and what kind of information you 
will require to guide your decision. 
b. Assuming you consider a risk-based strategy as an effective audit 
strategy for executing your mandate, what are the probable areas 
of risk you will focus on and how will you test for them? 

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