An auditor obtains knowledge about a new clients business and its industry in order to:

Select one:

A.

understand the events and transactions that may have an effect on the clients financial report.

B.

evaluate whether the aggregation of known misstatements causes the financial report taken as a whole to be materially misstated.

C.

make constructive suggestions concerning improvements to the clients internal control.

D.

develop an attitude of professional scepticism concerning managements financial report assertions.