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.

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Definitions:

Differentiation

Differentiation is the process by which cells or tissues undergo a change towards a more specialized form or function during development.

Neuroglia

Nervous system cells that assist neurons and facilitate their function in a variety of ways.

Nervous Tissue

Animal tissue composed of neurons and neuroglia; detects stimuli and controls responses to them.