The Audit Team Gathers Information About a New Client's Business

question 57

Multiple Choice

The audit team gathers information about a new client's business and industry in order to obtain:

• A) an understanding of the clients internal control system for financial reporting.
• B) an understanding of how economic events and transactions have an effect on the company's financial statements.
• C) information about engagement risk.
• D) information regarding whether the company is engaging in financial statement fraud.

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Definitions:

Social Inequality

The existence of unequal opportunities or rewards for different social positions or statuses within a society.

Privilege

Privilege is the advantage that individuals or groups have over others, often unconsciously, due to societal norms, beliefs, and structures that favor them.

Disjuncture

A separation or lack of alignment between components or ideas.

Structural Functionalism

A sociological theory that views society as a complex system whose parts work together to promote solidarity and stability.