Chapter 8 Flashcards
1
Q
The audit team gather information about a new client’s business and industry in order to obtain:
A. An understanding of the client’s internal control system for financial reporting.
B. An understanding of how economic events and transactions have an effect on the company’s financial statements.
C. Information about control risk.
D. Information regarding whether the company is engaging in financial statement fraud.
A
B. An understanding of how economic events and transactions have an effect on the company’s financial statements.
