An Auditor Obtains Knowledge About a New Client's Business and Its

question 57

Multiple Choice

An auditor obtains knowledge about a new client's business and its industry in order to:

• A)make constructive suggestions concerning improvements to the client's internal control.
• B)develop an attitude of professional skepticism concerning management's financial statement assertions.
• C)evaluate whether the aggregation of known misstatements causes the financial statements taken as a whole to be materially misstated.
• D)understand the events and transactions that may have an effect on the client's financial statements.

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Definitions:

Employee Voice

The means by which employees communicate their opinions, suggestions, concerns, or feedback to their employers, often with the aim to influence workplace decisions.

Industrial Relations

The study and practice of managing and improving relationships between management and employees, focusing on employment laws, labor contracts, and collective bargaining.

Mainstream Economics

The body of knowledge, models, and assumptions predominantly accepted and taught by economists and academic institutions around the world.

Employment Relationship

The formal or informal agreement between an employer and an employee that outlines the terms of employment, including duties, rights, and obligations.