The Auditor Commences to Understand the Client and Related Risks

question 74

Multiple Choice

The auditor commences to understand the client and related risks of the organization for what purpose?

• A)To determine the audit opinion that will be issued.
• B)To determine the appropriate understanding of internal controls by management.
• C)To determine the detection of audit procedures in the period under audit.
• D)To determine whether the auditor has sufficient knowledge to perform the engagement/audit.

---

Definitions:

Mean

The arithmetic average of a set of numbers, found by dividing the sum of these numbers by the count of the numbers in the set.

Function

A relationship between a set of inputs and a set of permissible outputs, where each input is related to exactly one output.

Probability

The measure of the likelihood that an event will occur.

Function

A mathematical relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.