The Purpose of an Audit Strategy Is

question 73

Multiple Choice

The purpose of an audit strategy is

• A) To provide a defense against litigation.
• B) To gain an understanding of the client.
• C) To comply with securities law.
• D) To set the scope, timing, and direction for auditing each relevant assertion.

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Definitions:

Standard Of Care

The degree of attention, caution, and prudence that a reasonable person should exercise in a particular situation.

UCC

For all commercial interactions within the United States, the Uniform Commercial Code (UCC) provides a fully detailed legislative framework.

Merchants

Individuals or businesses engaged in the trade of goods, services, or both to consumers.

Parol Evidence Rule

A legal principle that prohibits the use of oral or extrinsic evidence to contradict, vary, or add to the terms of a written contract.