Identify the strategic understanding of the$$ client's business and industry

Part $1$

A$.$

Strategic understanding provides an overview of the$$ client's business and$$ it's environment to assess the risk of material misstatement in the financial$$ statement, including enquiries of management and analytical procedures.

B$.$

Strategic understanding is an overview of the entity and its$$ environment, including the$$ entity's internal control. There are several aspects of this approach to understand the$$ client's business and$$ industry, such as industry and external$$ environment, business operations and$$ processes, management and$$ governance, objectives and$$ strategies, measurement and performance.

C$.$

Strategic understanding provides an overview of the strategic approach to understanding the$$ client's business and industry. There are several aspects of this$$ approach, such as reliability of financial$$ reporting, effectiveness and efficiency of$$ operations, and compliance with laws and regulations.

D$.$

Strategic understanding provides an overview of the strategic approach to understanding the$$ client's business and industry. There are several aspects of this approach to understand the$$ client's business and$$ industry, such as industry and external$$ environment, business operations and$$ processes, management and$$ governance, objectives and$$ strategies, measurement and performance.