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

question 1

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:

Shoes

Footwear designed to protect and comfort the human foot while doing various activities, also serving as an item of decoration.

Elaboration

The process of adding more detail or information to something, often used in the context of cognitive processing of messages.

Personal Importance

The significance or value an individual places on a specific idea, activity, or possession in their life.

Stimulus

Any object, event, or factor that can elicit or evoke a response from an organism or system.