In Order for an Auditor to Gain an Understanding of an Entity

question 43

Essay

In order for an auditor to gain an understanding of an entity and its environment it should consider the entity's industry conditions, regulatory environment and any economy wide factors. Give two examples of what an auditor may consider in each.

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Definitions:

Older Men

Adult males who are significantly advanced in age, often characterized by experience, maturity, and changes in physical and cognitive abilities.

Educational Attainment

The highest level of education an individual has completed, such as high school, undergraduate, or graduate degrees.

Likelihood

The probability or chance that a particular event will occur.

Marriage

A legally and socially sanctioned union between individuals that establishes rights and obligations between them and their children, and society.