Auditors must gain an understanding of their client at the outset of every audit.

Question

Quizplus · Accepted Answer

Auditors must obtain an understanding of their client's business, industry, operations, financial reporting systems, and internal controls to properly plan and perform an audit. This ensures that they are able to identify and assess the risks of material misstatement and design appropriate audit procedures to obtain sufficient and appropriate audit evidence.

Auditors Must Gain an Understanding of Their Client at the Outset