With Respect to Understanding the Client's Revenue Process, It Is

question 43

Multiple Choice

With respect to understanding the client's revenue process, it is particularly important that the auditor ________.

• A)makes some preliminary inquiries with the client's attorney
• B)be knowledgeable about the entity, how the entity earns revenues, and particular revenue recognition issues that may be relevant to the entity
• C)examines other firms within the client's industry to determine acceptable practices
• D)uses accounting standards as an optional guide to determining what the client should be recording

---

Definitions:

Periosteum

The fibrous membrane covering the bone except at the articulating surfaces.

Tough Membrane

Refers to a dense and durable layer of tissue that provides protection or support within an organism, such as the dura mater of the brain.

Surface Of The Bone

The outermost layer of a bone where various biological processes take place and where muscles and ligaments may attach.