Question: What knowledge does the auditor need about the client's business in an audit of historical financial statements? Explain how this knowledge may be useful in

What knowledge does the auditor need about the client's business in an audit of historical financial statements? Explain how this knowledge may be useful in performing other assurance or consulting services for the client.

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When auditing historical financial statements an auditor must have a thorough understanding of the client and its environment This knowledge should include the clients regulatory and operating environment business strategies and processes and measurement indicators This strategic understanding is also useful in other assurance or consulting engagements For example an auditor who is performing an assurance service on information technology would need to understand ... View full answer

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