The starting point for every audit test is _______.
A)agreeing fee schedules and compensation
B)contact with the predecessor auditor
C)is obtaining an understanding of the business and industry
D)agreement with the client as to what kind of audit opinion they can expect

Question

Quizplus · Accepted Answer

Obtaining an understanding of the business and industry is the starting point for every audit test. This understanding helps the auditor to plan their audit procedures effectively and assess the risks associated with the audit engagement. Agreeing fee schedules and compensation, contact with the predecessor auditor, and agreement with the client as to what kind of audit opinion they can expect are important aspects of the audit engagement but they do not form the starting point for conducting audit tests.

The Starting Point for Every Audit Test Is _______