Auditors should understand client objectives related to
A) reliability of financial reporting.
B) effectiveness and efficiency of operations.
C) compliance with laws and regulations.
D) all of the above.

Question

Quizplus · Accepted Answer

Auditors should understand all of these client objectives in order to properly plan and execute their audit procedures. Understanding the reliability of financial reporting helps the auditor assess the accuracy of the financial statements, while understanding the effectiveness and efficiency of operations helps the auditor identify potential areas of material misstatements. Compliance with laws and regulations is also important to understand as noncompliance can lead to both legal and financial issues.

Auditors Should Understand Client Objectives Related to