You are a manager in charge of training recently-hired audit associates. One of the associates, Elle, asks you to explain how the knowledge of a client’s business and industry affects the auditor’s assessment of risk. You decide to use AT LEAST two of the following companies to illustrate how a client’s business and industry relate to the various risks assessed in an audit: Exxon Amazon Six Flags Camping World Prepare a short memo responding to Elle’s question. Assume this could eventually end up in training materials for your audit firm. Keep your response short (fewer than 200 words).

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Knowing the clients business helps us in a number of ways both during the conduct of the audit and w... View the full answer