Question: Explain why auditors need an understanding of the client's industry. What information sources are commonly used by auditors to learn about the client's industry?

Explain why auditors need an understanding of the client's industry.
What information sources are commonly used by auditors to learn about the client's industry?

Step by Step Solution

★★★★★

3.45 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The second standard of fieldwork requires the auditor to obtain an understanding of the entity and i... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

185-B-A-A-P (218).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Consider pressure-driven flow in an annular channel. The inner and outer radii are as in Fig. P7.1, but now both cylinders are stationary and there is a mean fluid velocity U in the z direction. The...

Why do auditors need an understanding of the business environment and operations of an auditee company? What are examples of a businesss environmental and operating risks?

What steps are commonly used by unions to organize a workplace?

Explain why auditors need to consider both existence and occurrence, and completeness when auditing an account balance? In terms of the transactions posted, how much audit comfort does investigating...

this is an auditing assignment for monday 6-7 What is the auditor's responsibility when noncompliance with laws or regulations is identified or suspected? 6-8 What are the six elements of...

II. Chapter 8 Questions 8-1 What are the benefits derived from planning audits? 8-2 What are the responsibilities of the successor and predecessor auditors when a company is changing auditors? 8-3...

8-1 What are the benefits derived from planning audits? 8-2 What are the responsibilities of the successor and predecessor auditors when a company is changing auditors? 8-3 What is the purpose of an...

audit case question. read the case properly and ans the required qus, I also upload the picture and copy paste it for your better understanding Introduction The accounting firm of Barnes and Fischer,...

6. Explain why auditors need an understanding of the client's industry. What information sources are commonly used by auditors to learn about the client's industry

Explain why auditors need an understanding of the client's industry. What information sources are commonly used by auditors to learn about the client's industry?

Use the Gram-Schmidt process to construct an orthonormal basis for the following subspaces of R3: (a) The plane spanned by (0. 2, l)T, (1, - 2, - l)T; (b) The plane defined by the equation 2x - y +...

What are the four major categories of ethical conduct that must be adhered to by CMAs? (Appendix)

Enabled: Cumulative Final Exam ( 7 ) Ratios that measure how efficiently a firm manages its assets and operations to generate net income are referred to an ratios. Multiple Choice Profitability....

Amelia Company purchased $1,000,000 of 6% bonds of Elektra Company on January 1, 2016, paying $864,100. The bonds mature January 1, 2026. Interest is payable each July 1 and January 1. The effective...

Case: Luke's Diner has planned sales increase of 7% this year that could be attained due to the introduction and addition of a new dessert snack line. Seasonal reductions are planned to remain the...

John Inc and Victor Inc. formed a joint venture on January 1, 2020. John invested plant and equipment with a book value of $500,000 and a fair value of $800,000 for a 30% interest in the venture...

Coherent light of frequency 6.36 104 Hz passes through two thin slits and falls on a screen 86.0 cm away. You observe that the third bright fringe occurs at 3.12 cm on either side of the central...

Difference between CIBC and credit Agricola ?

When management does not provide reasonable justification that a change in accounting principle is preferable and it presents comparative financial statements, the auditor should express a qualified...

The following questions concern accumulating evidence in the acquisition and payment cycle. Choose the best response. a. In comparing the confirmation of accounts payable with suppliers and...

The following questions concern internal controls in the acquisition and payment cycle. Choose the best response. a. Effective internal control over the purchasing of raw materials should usually...

Dartis Company is considering investing in a specialized equipment costing $640,000. The equipment has a useful life of 5 years and a residual value of $67,000. Depreciation is calculated using the...

9. (17 marks) An investor has R100 and is considering investing in two different stocks. The prices of both stocks are assumed to follow the lognormal model with the parameters below. Stock A B...

The company pays interest at 12% on all borrowings. And pays a combined state and federal tax rate of 35%. Complete the forecast income statement and balance sheet. Begin by guessing at interest...