In What Order Should the Following Steps Occur

question 5

Multiple Choice

In what order should the following steps occur?
A.Assess client business risk
B.Understand the client's business and industry
C.Perform preliminary analytical procedures
D.Assess acceptable audit risk

• A)D, B, C, A
• B)B, A, C, D
• C)B, D, A, C
• D)D, C, B, A

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Definitions:

Antidumping Duty

A tariff imposed by a government on imported goods thought to be priced below fair market value to protect domestic industries.

Tariff

A tax on imported goods.

Just Compensation

The fair market value that must be paid for property taken by the government for public use, as guaranteed by the Fifth Amendment.

Proper Public Purpose

Proper public purpose is a principle stating that governmental actions and the use of public resources must aim to benefit the general public or community as a whole.