An Auditor Obtains Knowledge About a New Client's Business and Its

question 71

Multiple Choice

An auditor obtains knowledge about a new client's business and its industry to:

• A) Make constructive suggestions concerning improvements to the client's internal control.
• B) Develop an attitude of professional skepticism concerning management's financial statement assertions.
• C) Evaluate whether the aggregation of known misstatements causes the financial statements taken as a whole to be materially misstated.
• D) Understand the events and transactions that may have an effect on the client's financial statements.

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Definitions:

Minor's Parents

The legal guardians or biological parents of an individual who is under the age of legal adulthood.

Intervention Strategy

A plan or method designed to intervene in a situation in order to change the outcome or influence the course of events.

Task-Centered

Task-centered refers to an approach or methodology that focuses primarily on the completion of specific tasks or objectives, often in a work or therapeutic setting.

Reactance Theory

A psychological theory suggesting that people act against threats to their freedoms or choices to maintain a sense of control.