In Order to Obtain an Understanding of the Client's Business

question 147

Multiple Choice

In order to obtain an understanding of the client's business, the audit firm will consider

• A) inherent and control risk of the client.
• B) audit risk to the CPA firm.
• C) the client's business risk and the risk of material misstatements in the financial statements.
• D) the CPA firm's potential ongoing revenue from the audit client.

---

Definitions:

Lithotomy

An examination position wherein the patient lies on the back with thighs flexed upon the abdomen and legs flexed upon the thighs.

Operating Scissors

A surgical instrument specifically designed for cutting tissues during surgical procedures.

Dressings

Materials used in medicine to cover and protect wounds.

Autoclaved Items

Objects that have been sterilized using an autoclave, a machine that uses steam under pressure to kill bacteria, viruses, and other microorganisms.