An auditor who accepts an audit engagement must gain an understanding of the client's industry and business.This includes knowledge of the:
A) industry and external environment.
B) business operations and processes.
C) management and governance.
D) all of the above

Question

Quizplus · Accepted Answer

To properly conduct an audit, the auditor needs to have a comprehensive understanding of the client's industry and business. This includes knowledge of the industry and external environment, such as competitors, regulations, and market conditions. They also need to understand the business operations and processes, including how the company generates revenue, manages inventory, and handles financial transactions. Finally, they need to have knowledge of the company's management and governance structure, including key personnel and decision-making processes.

An Auditor Who Accepts an Audit Engagement Must Gain an Understanding