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Outline the ways in which an auditor acquires knowledge about the client‘s business and industry

      

Outline the ways in which an auditor acquires knowledge about the client‘s business and industry

  

Answers


Wilfred
- Previous experience with entity and industry
- Discussion with the people of the entity e.g. directors, senior operating personnel
- Discussion with internal audit personnel and review of internal audit reports
- Discussion with other auditors and with legal and other advisors who have provided services to entity or within the industry
- Discussion with knowledgeable people in the entity e.g. industry economists, industry regulators, customers, suppliers and competitors
- Publications related to industry e.g. government statistics, surveys, texts, trade journals, reports prepared by banks and security dealers, financial newspapers etc
- Legislation and regulations that significantly affect the entity
- Visits to entity‘s premises and plant facilities
Wilfykil answered the question on February 23, 2019 at 06:20


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