When the auditor considers whether he or she understands the form and substance of the transaction or event, and whether the relevant authoritative literature has been applied consistently by the client, he or she 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

Performing the analysis and identifying potential alternatives involves understanding the transaction or event in detail, including its form and substance, and evaluating whether the client has applied the relevant authoritative literature consistently. This step is crucial for making informed decisions based on a thorough analysis of the situation.

When the Auditor Considers Whether He or She Understands the Form