Why is a tour of the client's facilities helpful in obtaining a better understanding of the client's business operations?
A) It may indicate areas of increased inherent risk.
B) It may indicate areas of increased client business risk.
C) It may indicate areas of increased audit risk.
D) It may indicate reasons not to accept the engagement.

Question

Quizplus · Accepted Answer

A tour of the client's facilities can reveal areas where there might be increased inherent risk due to the nature of operations, complexity, or other factors that could affect the financial statements.

Why Is a Tour of the Client's Facilities Helpful in Obtaining