EBK AUDITING & ASSURANCE SERVICES: A SY
EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Chapter 2, Problem 2.6RQ
To determine

Concept Introduction:

Auditing is an independent examination of financial statements. The set of financial statements includes balance sheet, income statement, statement of owner’s equity and statement of cash flows. The audit is performed by an independent auditor.

Understanding the client, its business and internal control: The auditor takes the understanding of the client business and internal control to plan its audit procedures.

To indicate: The importance of understanding the characteristics of an entity’s business model for a financial statement auditor.

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