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

Question

Quizplus · Accepted Answer

Industry comparisons can help auditors better understand their client's performance by providing a benchmark for comparison. This can aid auditors in identifying areas where their client is doing well or where they may need to improve. Options B and C refer to errors and irregularities, which can also be identified through industry comparisons, but these are not the primary benefit. Option D is not accurate as industry comparisons do not necessarily relate to audit costs.

An Important Benefit of Industry Comparisons Is as