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An auditor evaluates an entity's risk assessment because it is a component of overall audit risk in a

financial statement audit.

An auditor's evaluation of an entity's risk assessment may not be applicable to the audit of every entity.

An auditor evaluates an entity's risk assessment to understand how management addresses risks

relevant to financial reporting.

An auditor need not consider an entity's risk assessment because he or she is primarily concerned with

audit risk in a financial statement audit.