An important reason for auditors to obtain good knowledge of a client's industry is that
A)payroll processing functions could differ from client to client.
B)control risks will vary from zero to 100% and can be better assessed in context.
C)detection risk must be set in accordance with the needs of the industry as well as of the individual client.
D)organizations like city governments have unique accounting requirements that could be complex.

Question

Quizplus · Accepted Answer

Understanding a client's industry helps auditors recognize unique accounting requirements and complexities specific to that industry, such as those found in city governments.

An Important Reason for Auditors to Obtain Good Knowledge of a Client's