The Auditors' Understanding Established with a Client Should Be Established

question 33

Multiple Choice

The auditors' understanding established with a client should be established through a(an) :

• A) Oral communication with the client.
• B) Written communication with the client.
• C) Written or oral communication with the client.
• D) Completely detailed audit plan.

---

Definitions:

Usual Selling Price

The regular or typical price at which goods or services are sold in the market under normal conditions.

Outside Supplier

A third-party entity that provides goods or services to a business, typically not affiliated with the purchasing company.

Variable Costs

Costs that vary in total directly and proportionately with changes in the level of production or activity volume.

Transfer Price

The charge for products and services transferred between branches of the same company.