An Auditor Who Accepts an Audit Engagement Must Gain an Understanding

question 69

Multiple Choice

An auditor who accepts an audit engagement must gain an understanding of the client's industry and business.This includes knowledge of the:

• A) industry and external environment.
• B) business operations and processes.
• C) management and governance.
• D) all of the above

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Definitions:

Stephen Clark Wholesale

A specific business name, presumably engaged in the wholesale distribution of goods.

Check Register

A record book or ledger for tracking checks written, deposits made, and the current balance of a checking account.

Deposit

Money placed in a bank account or given as part of a transaction as a guarantee or prepayment.

Checkbook Stubs

Portions of a checkbook that are kept after the check is written, used to record amounts, payees, and transaction dates.