Developing an understanding of the client's business and industry is essential to proficiency as discussed in the PCAOB's general standards.

Question

Quizplus · Accepted Answer

Yes, developing an understanding of the client's business and industry is essential to proficiency as discussed in the PCAOB's general standards. It is a key component of an auditor's responsibility to plan, execute, and report on an audit. Understanding a client's business helps an auditor identify significant risks and properly assess the adequacy of internal controls, among other things.

Developing an Understanding of the Client's Business and Industry Is