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When Obtaining an Understanding of the Entity and Its Environment

Question 1

Multiple Choice

When obtaining an understanding of the entity and its environment, the auditor should obtain an understanding of internal controls primarily to:


A) assess the risk of material misstatement and plan the audit.
B) provide suggestions for improvement to the client.
C) serve as a basis for setting audit risk and materiality.
D) comply with the Corporations Act 2001.

Correct Answer:

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