An important benefit of industry comparisons is as:
A) an indicator of errors.
B) an aid to understanding the client's business.
C) an indicator of irregularities.
D) a least- cost indicator for audit procedures.

Question

Quizplus · Accepted Answer

Industry comparisons can help auditors understand the client's business better by providing context and benchmarks for financial performance. They can also aid in identifying potential areas of risk or concern. However, industry comparisons alone may not be sufficient for identifying errors or irregularities, and they should not dictate audit procedures without considering other factors specific to the client's circumstances.

An Important Benefit of Industry Comparisons Is As