When an Auditor Updates His or Her Understanding of the Entity

question 127

Multiple Choice

When an auditor updates his or her understanding of the entity and its environment, _______.

• A)each audit should be viewed identically to previous audits
• B)each audit should be viewed independently from previous audits
• C)each audit should be viewed with respect to the current audit of other clients
• D)the auditor should be sure that senior management agrees with the auditor's understanding, and modify appropriately if not

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Definitions:

Restraining Forces

Factors that resist or oppose change within an organization, hindering its progress and adaptation.

Driving Forces

Factors that actively contribute to the movement, change, or development of certain processes or outcomes.

Unfreezing

The initial phase in the change process where existing behaviors, attitudes, or norms are challenged and destabilized.

Lewin's Basic Change Model

A three-stage theory of change that describes the process as unfreeze, change, and refreeze, used to manage change within an organization.