To Adequately Plan an Audit, the Auditor Should Obtain Sufficient

question 40

Essay

To adequately plan an audit, the auditor should obtain sufficient knowledge of the client's business to understand events, transactions, and practices that may have a significant effect on the financial statements. The auditor needs knowledge about, for example, the type of business, including products and services, company locations, and marketing methods.
REQUIRED:
1.List at least four additional items about which the auditor should be knowledgeable.
2.List at least four audit procedures that would normally be used in obtaining this understanding.
3.How would the auditor use this information in performing a financial statement audit?

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Definitions:

Positive Freedom

Refers to the power or capacity to act upon one’s free will, often associated with the ability to fulfill one's true potential.

Kant

Refers to Immanuel Kant, an 18th-century German philosopher known for his work in epistemology, ethics, and aesthetics.

Theoretical Standpoint

A perspective or viewpoint informed by a coherent set of theoretical ideas, often guiding analysis or interpretation.

Practical One

Refers typically to a person or approach that focuses on practical actions and solutions rather than theoretical or abstract ideas.