An Experienced Audit Team Will Begin Planning the Audit Before

question 43

Multiple Choice

An experienced audit team will begin planning the audit before it knows all the specific information about a particular client company because

• A) experienced auditors know the general framework of what needs to be done on any audit.
• B) auditors experienced in the client's industry understand the activities and risks of the industry, which gives them an understanding of the important financial statement accounts and ICFR areas.
• C) auditors experienced with this client company have already gained quite a bit of information from the client acceptance or continuance processes.
• D) all of the above

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Definitions:

Ethical Dilemma

A situation where a person is faced with a decision that involves a conflict between moral imperatives.

Ethical Issue

A dilemma or situation that requires a choice between options that are or seem to be morally right or wrong.

Conflicting Principles

A situation where two or more ethical, legal, or moral guidelines are in opposition to each other, making decision-making complex.

Prosecutorial Ethical Situation

Scenarios involving ethical dilemmas or decisions within the realm of prosecuting legal cases.