Question: Why does the auditor need a good understanding of the auditees business and environment?

Why does the auditor need a good understanding of the auditee’s business and environment?

Step by Step Solution

★★★★★

3.52 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Auditors must understand the Broad economic environment in which the auditee operates Effects of nat... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

383-B-A-A-P (1042).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Q:

Why does the auditor need to assess controls over information systems acquisition, development, and maintenance?

Q:

Why does the auditor need to know how to audit an IFRS conversion?

Q:

Why does the auditor need to know how to audit an IT system conversion?

Q:

1 - What is assertion as it relates to audit? 2 - Why does the auditor need a good understanding of the auditees business and environment.

Q:

The company is Target Corporations Planning an Audit Engagement Background \& Purpose: To properly plan and perform an engagement, the auditor must obtain an understanding of the client's business...

Q:

Accounting Research Center, Booth School of Business, University of Chicago Why Do Audits Fail? Evidence from Lincoln Savings and Loan Author(s): Merle Erickson, Brian W. Mayhew, William L. Felix,...

Q:

I have attached two articles that needs to read and reviewed and then...

Q:

Hi, could you please help me solve this? Thank you so much. Chester, Inc. Trial Balances for years ending December 31, 2013, 2014, and 2015 Account Description Cash on Hand Regular Checking Account...

Q:

ACC 640 Keystone Case Study Engagement Overview Keystone Inc., a listed company on a U.S. stock exchange (publicly traded) in the United States, is looking to expand. XBroker was seen as a potential...

Q:

ACC 640 Project One Guidelines and Rubric Competencies In this project, you will demonstrate your mastery of the following competencies: Apply Generally Accepted Auditing Standards to the audit...

Q:

Calculate the implicit and explicit tax rates for the following three assets. The required pretax total rate of return Ro for each asset is: 15% for the fully taxable asset, 20% for the partially...

Q:

Reduce the decision table in Figure to the minimum number of rules. Conditions and Actions Rules 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Sufficient quantity on hand Quantity large enough Y Y Y Y N NN...

Q:

The capital account reflects changes in country ownership of direct foreign investment. Group of answer choices True False

Q:

Suppose you can borrow money at an annual interest rate of 8% but can save money at an annual interest rate of only 5%. If you start with zero capital and if the yearly cash flows of an investment...

Q:

Fortune's 100 best companies to work for 1. Qualcomm technology 2. Hilcorp energy company pl4ease after the selection and research is completed in-depth analyze the two companies, each student...

Q:

This week has focused on using several cost analysis tools to determine how well products contribute to a companys profitability. However, all of these tools are internally used and not required to...

Q:

Design what you think would be an effective performance management system, by using the below elements. How would you link these requirements to a learning management system? Consider the following...

Q:

What do you think would be the Cobb-Douglas single best prescription for developing countries to catch up with advanced countries?

Q:

Contact a local firm that offers commissioning services. Interview or shadow a commissioning author - ity to learn more about the role of this stakeholder in project sustainability. Review a...

Q:

What factors in the auditees systems indicate audit work may need to be performed at an interim date?

Q:

What are the characteristics of IT-based information systems?

Q:

What general and application controls are used in IT-based systems?

Q:

This Question: 1 pt 4 of 14 (3 complete) This Test: 14 pts possible You are the operations manager for an airline and you are considering a higher fare level for passengers in aisle seats. How many...

Q:

D Question 33 20 pts ABC trades on the New York Stock Exchange (NYSE). The National Best Bid / Offer (NBBO) and the bid-ask midpoint record for ABC are as follows: Time Bid-ask spread 0.05 National...

Q:

1. Titan Mining Corporation has 9 million shares of equity outstanding and 1,200,000 8.5 per cent semi-annual bonds outstanding, par value 100 each. The equity currently sells for 34 per share and...