The primary purpose for obtaining an understanding of the entity’s environment (including its internal control) in a financial statement audit isa. To determine the nature, timing, and extent of substantive procedures to be performed.b. To make consulting suggestions to the entity’s management.c. To obtain direct sufficient appropriate audit evidence to afford a reasonable basis for an opinion on the financial statements.d. To determine whether the entity has changed any accounting principles
The primary purpose for obtaining an understanding of the entity’s environment (including its internal control) in a financial statement audit isa. To determine the nature, timing, and extent of substantive procedures to be performed.b. To make consulting suggestions to the entity’s management.c. To obtain direct sufficient appropriate audit evidence to afford a reasonable basis for an opinion on the financial statements.d. To determine whether the entity has changed any accounting principles
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The primary purpose for obtaining an understanding of the entity’s environment (including its internal control) in a financial statement audit is
a. To determine the nature, timing, and extent of substantive procedures to be performed.
b. To make consulting suggestions to the entity’s management.
c. To obtain direct sufficient appropriate audit evidence to afford a reasonable basis for an opinion on the financial statements.
d. To determine whether the entity has changed any accounting principles
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