Explain the reason why the auditors need an understanding of the client’s industry. State the sources of information that are commonly used by the auditors to learn about the client’s industry.

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Answer 1

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Chapter 8, Problem 5RQ

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Explain the reason why the auditors need an understanding of the client’s industry. State the sources of information that are commonly used by the auditors to learn about the client’s industry.

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Auditors gather information through communication with individuals internal and external to the prospective client. Which of the following would be internal to the client? O Communication with the previous auditor O Communication with third parties O Communication with client personnel O Communication with the client's industry peers

Auditors seek to understand a client's internal control in order to better serve their clients.

Answer 2

Question

Chapter 8, Problem 5RQ

To determine

Explain the reason why the auditors need an understanding of the client’s industry. State the sources of information that are commonly used by the auditors to learn about the client’s industry.

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Answer 3

Question

Chapter 8, Problem 5RQ

To determine

Explain the reason why the auditors need an understanding of the client’s industry. State the sources of information that are commonly used by the auditors to learn about the client’s industry.

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Answer 4

Question

Chapter 8, Problem 5RQ

To determine

Explain the reason why the auditors need an understanding of the client’s industry. State the sources of information that are commonly used by the auditors to learn about the client’s industry.

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Answer 5

Chapter 8, Problem 5RQ

To determine

Explain the reason why the auditors need an understanding of the client’s industry. State the sources of information that are commonly used by the auditors to learn about the client’s industry.

Answer 6

Chapter 8, Problem 5RQ

To determine

Explain the reason why the auditors need an understanding of the client’s industry. State the sources of information that are commonly used by the auditors to learn about the client’s industry.

Answer 7

Chapter 8, Problem 5RQ

To determine

Explain the reason why the auditors need an understanding of the client’s industry. State the sources of information that are commonly used by the auditors to learn about the client’s industry.

Answer 8

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Answer 9

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Answer 11

Ch. 8 - Prob. 1RQ Ch. 8 - Prob. 2RQ Ch. 8 - Prob. 3RQ Ch. 8 - Prob. 4RQ Ch. 8 - Prob. 5RQ Ch. 8 - Prob. 7RQ Ch. 8 - Prob. 8RQ Ch. 8 - Prob. 9RQ Ch. 8 - Prob. 10RQ Ch. 8 - Prob. 11RQ

Explain the reason why the auditors need an understanding of the client’s industry. State the sources of information that are commonly used by the auditors to learn about the client’s industry.

Solution Summary: The author explains that auditors need an understanding of the client's business and industry to determine the appropriate extent of further audit procedures.

Explain the reason why the auditors need an understanding of the client’s industry. State the sources of information that are commonly used by the auditors to learn about the client’s industry.

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Chapter 8 Solutions