In planning an audit of a new client, an auditor most likely would consider the methods used to process accounting information because such methods:

Choice "a" is correct. The auditor would consider the methods used to process accounting

information in planning an audit of a new client, because such methods influence the design of

internal control. The auditor is required to obtain an understanding of the design of internal control

in order to plan the audit and determine the nature, timing, and extent of tests to be performed.

Choice "b" is incorrect. The auditor's judgment about materiality levels is based upon the auditor's

perception of the needs of a reasonable person who will rely on the financial statements, not on the

methods used to process accounting information.

Choice "c" is incorrect. The planned audit objectives are based upon the auditor's desire to render an

opinion on the fairness of the financial statements. This end goal is not influenced by the methods

used by the client to process accounting information.

Choice "d" is incorrect. Audit risk is the risk that the auditor may unknowingly fail to appropriately

modify his or her opinion on financial statements that are materially misstated. The auditor's only

acceptable level of audit risk is low, and this is not affected by the client's methods used to process

accounting information.