An Important Reason for Auditors to Obtain Good Knowledge of a Client's

question 23

Multiple Choice

An important reason for auditors to obtain good knowledge of a client's industry is that

• A)payroll processing functions could differ from client to client.
• B)control risks will vary from zero to 100% and can be better assessed in context.
• C)detection risk must be set in accordance with the needs of the industry as well as of the individual client.
• D)organizations like city governments have unique accounting requirements that could be complex.

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Definitions:

Sexual Harassment

A type of sexual discrimination.

Supervisor

An individual within an organization responsible for overseeing the work of others.

Armed Forces

The military forces of a nation, including the army, navy, air force, and sometimes other branches like the marines or coast guard.

Reinstated

The process of restoring something or someone to their previous position or status.