The Audit Team Gathers Information About a New Client's Business

question 3

Multiple Choice

The audit team gathers information about a new client's business and industry in order to obtain:

• A)an understanding of the clients internal control system for financial reporting.
• B)an understanding of how economic events and transactions have an effect on the company's financial statements.
• C)information about control risk.
• D)information regarding whether the company is engaging in financial statement fraud.

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Definitions:

Emotional Expression

The outward display or communication of emotions through facial expressions, body language, and voice.

Compulsive Actions

Repetitive behaviors performed according to certain rules or in a stereotyped fashion, often as a response to obsessive thoughts.

Catatonia

A psychiatric syndrome characterized by a lack of movement, activity, or expression, which can occur in severe mental health conditions.

Senseless, Immobility

An inability to move or respond, often resulting from shock or extreme confusion.