Auditors can eliminate engagement risk: Group of answer choicesunder no circumstancesby lowering audit riskby conducting more extensive audit proceduresby collecting more audit evidenceby establishing policies for client acceptance and continuance

Auditors can manage, but not completely eliminate, engagement risk. Here's why:

1. Under no circumstances: This is the correct answer. Engagement risk cannot be completely eliminated because there is always a level of uncertainty and risk involved in an audit engagement. Even with the most thorough audit procedures, there is always a chance that material misstatements may not be detected.

2. By lowering audit risk: Lowering audit risk can help to manage engagement risk, but it cannot eliminate it entirely. Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. Even if this risk is minimized, other risks associated with the engagement may still exist.

3. By conducting more extensive audit procedures: While conducting more extensive audit procedures can help to reduce the likelihood of an incorrect audit opinion, it cannot completely eliminate engagement risk. There is always a chance that even the most thorough procedures may not detect a material misstatement.

4. By collecting more audit evidence: Collecting more audit evidence can increase the auditor's understanding of the business and its environment, but it cannot completely eliminate engagement risk. There is always a chance that the evidence collected may not be sufficient or appropriate to support the audit opinion.

5. By establishing policies for client acceptance and continuance: While these policies can help to manage engagement risk by ensuring that the auditor only accepts engagements from clients that they are competent to audit and where there is no threat to auditor independence, they cannot completely eliminate engagement risk. There is always a chance that unforeseen issues may arise during the audit engagement.