An Important Reason for Auditors to Obtain Good Knowledge of a Client's

question 23

Multiple Choice

An important reason for auditors to obtain good knowledge of a client's industry is that

• A)payroll processing functions could differ from client to client.
• B)control risks will vary from zero to 100% and can be better assessed in context.
• C)detection risk must be set in accordance with the needs of the industry as well as of the individual client.
• D)organizations like city governments have unique accounting requirements that could be complex.

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Definitions:

Majority Culture

The dominant cultural practices, beliefs, and values of the predominant social group within a given society.

Informative

Providing useful or significant information or knowledge.

Mental Illness

A wide range of mental health conditions that affect mood, thinking, and behavior.

Social Status

The position or rank of a person or group within the hierarchical structure of society.