Which of the Following Is Not a Primary Reason for Obtaining

question 79

Multiple Choice

Which of the following is not a primary reason for obtaining a good understanding of the client's industry and external environment?

• A)Risk associated with a specific industry may affect the auditor's assessment of client business risk.
• B)Risk associated with a specific industry may affect the auditor's assessment of acceptable audit risk.
• C)Risk associated with a specific industry may affect the auditor's assessment of acceptable control risk.
• D)Many control risks are common to all clients in certain industries.

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Definitions:

U.S. Imports

Goods and services brought into the United States from other countries for sale.

Net Exports

The value of a country's total exports minus the value of its total imports.

Infant Industries

Industries in the early stages of development that may be protected from international competition to allow them to grow.

Free Trade

Free trade is a policy to eliminate restrictions on international trade, allowing goods and services to move freely across borders without tariffs, quotas, or other barriers.