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:

Interpersonal Stance

The position or attitude one adopts in relation to others, especially in social or therapeutic contexts.

Multimodal Therapeutic Relationship

An approach to therapy that integrates multiple therapeutic methods and considers various aspects of a client's life for effective treatment.

Positive Regard

A therapeutic concept that involves treating clients with acceptance, empathy, and respect without judgment.

Personality Change

Alterations in an individual's behavioral patterns, attitudes, or emotional response typically due to specific experiences or various influences.