Prior to Beginning the Fieldwork on a New Audit Engagement

question 43

Multiple Choice

Prior to beginning the fieldwork on a new audit engagement in which the audit team does not possess expertise in the industry in which the client operates, the audit team should:

• A)reduce audit risk by lowering the preliminary levels of materiality.
• B)design special substantive tests to compensate for the lack of industry expertise.
• C)engage financial experts familiar with the nature of the industry.
• D)obtain knowledge of matters that relate to the nature of the entity's business.

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Definitions:

Web-based Education

Refers to educational courses, programs, or learning resources that are delivered and accessed over the internet.

Portability

Portability refers to the ease with which something can be moved or transferred, often used in the context of technology and benefits.

Own Speed

A phrase referring to the pace at which an individual chooses or manages to progress or accomplish something based on personal capability or preference.

Underprivileged Countries

Nations that lack the economic, social, and technological resources compared to more developed countries, often resulting in lower living standards.