When the auditor considers whether he understands the form and substance of the transaction or event,and whether the relevant authoritative literature has been applied consistently by the client,he is performing which step in the professional judgment process?
A)identifying and defining the issue
B)performing the analysis and identifying potential alternatives
C)making the decision
D)gathering the facts

Question

Quizplus · Accepted Answer

The auditor is performing the step of analysis and identifying potential alternatives by considering whether he understands the form and substance of the transaction or event and whether the relevant authoritative literature has been applied consistently by the client. This step involves evaluating different options or alternatives to arrive at a conclusion or decision.

When the Auditor Considers Whether He Understands the Form and Substance