Auditors Do NOT Need to Know the Business and Economics

question 86

True/False

Auditors do NOT need to know the business and economics of the business in order to perform meaningful preliminary analytical procedures.

---

Definitions:

Per Capita

A statistical measure that allows comparison of entities by dividing a total quantity by the population size, indicating average value per person.

Industrial Development

The growth and evolution of industries in a nation or region, characterized by advancements in manufacturing, technology, and infrastructure.

Taiwan

An East Asian island country located off the southeastern coast of China, known for its dynamic economy and vibrant democracy.

Productivity Growth

An increase in the efficiency of production processes, leading to a higher output of goods and services for the same input of labor, capital, and resources.