Question: QUESTION 3 Understanding client's business is an important initial planning in performing external audit. Planning is an important audit concept to ensure that the audit

QUESTION 3

Understanding client's business is an important initial planning in performing external

audit. Planning is an important audit concept to ensure that the audit will be successful.

Therefore, ratio calculation is a tool that can be used at the planning stage to enhance the

auditor's understanding of their client and to assess the risk of financial misstatement.

The following are the auditor's calculation of several key ratios for Jati Berhad.

QUESTION 3Understanding client's business is an important initial planning in performing externalaudit.

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