Why Is the Understanding of the Client's Business and Industry

question 17

Essay

Why is the understanding of the client's business and industry important in tests of details for accounting estimates?

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Definitions:

Intimidation

The act of threatening or influencing someone through fear to compel or deter actions against their will.

Delegation

The assignment of authority and responsibility to another person to carry out specific activities while the person delegating retains the ultimate responsibility for the outcome.

Giving Orders

The act of commanding, directing, or instructing someone to do something.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.