During the Planning Process as the Auditor Obtains an Understanding

question 96

True/False

During the planning process as the auditor obtains an understanding of the audit client,the auditor should also gain an understanding of how the client uses the service organization.

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Definitions:

Substantial Performance

A legal principle indicating that a party has completed enough of its contractual obligations to warrant payment, despite minor deviations from the contract terms.

Uniform Commercial Code

The Uniform Commercial Code sets forth guidelines for commercial transactions, aiming to standardize and streamline processes across state lines within the United States.

Good Faith

The honest intention to act without taking an unfair advantage over another party, often a requirement in contract law.

Fair Dealing

A legal doctrine aimed at ensuring fairness in commercial transactions and preventing unethical behavior, often involving the honest and straightforward conduct of parties in a transaction.