Why Do Auditors Need to Understand the Organizational Structure of the Business

question 14

Essay

Why do auditors need to understand the organizational structure of the business?

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Definitions:

Railroads

Land transport routes using a series of tracks and stations for the movement of trains to transport passengers and goods.

Industrial Regulation

Governmental regulation of industries to ensure competition, control prices, prevent monopolies, and protect consumers.

Social Regulation

A form of government intervention in the private sector that aims to protect public welfare, health, safety, and the environment.

Costs Of Production

The total expenses incurred by a company to manufacture a product or provide a service, including materials, labor, and overhead.