Prior to beginning the fieldwork on a new audit engagement in which the audit team does not possess expertise in the industry in which the client operates,the audit team should

Question

Quizplus · Accepted Answer

Obtaining knowledge of matters that relate to the nature of the entity's business is the best choice. This will enable the audit team to gain an understanding of the entity's operations, industry-specific risks, and accounting practices, which are essential to develop an appropriate audit approach. This knowledge can be acquired through discussions with management, reviewing industry publications, and benchmarking against other similar entities. A, B, and C are not the best choices as they do not address the root cause of the problem of the audit team's lack of industry expertise.

Prior to Beginning the Fieldwork on a New Audit Engagement