An Auditor Who Accepts an Audit Engagement Must Gain an Understanding

question 51

Multiple Choice

An auditor who accepts an audit engagement must gain an understanding of the client's industry and business. This includes knowledge of the:

• A) business operations and processes.
• B) industry and external environment.
• C) management and governance.
• D) all of the above

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Definitions:

Fight-Or-Flight

The fight-or-flight response is a physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.

Approach Motivation

Anticipating rewards for success.

Prime

A condition of being in the best stage or highest quality, often used in relation to time or physical condition.

Avoidance Motivation

Worrying about the negative consequences of failure.