Auditors must understand the business and economics of the client's business in order to perform meaningful planning analytical procedures for long-lived assets.

Question

Quizplus · Accepted Answer

Understanding the client's business and economics is important for auditors to plan and perform effective analytical procedures for long-lived assets. This helps auditors to identify any anomalies or potential risks that may require further investigation or adjustment in the financial statements.

Auditors Must Understand the Business and Economics of the Client's