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

question 14

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.


Definitions:

Brainstorming Process

A creative group activity designed to generate a large number of ideas for the solution to a problem.

Criticize

To express disapproval of someone or something based on perceived faults or mistakes.

Expert

An individual with extensive knowledge or skill in a particular area or field.

Creativity

The ability to generate novel and valuable ideas, products, or solutions to problems.

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