Why is having sufficient knowledge of the client's business and industry is critical to performing a proper review of the client's statements?
A)To provide reasonable assurance that the financial statements are free of material misstatement.
B)To determine the proper sample size for substantive test procedures to be performed.
C)To assess the plausibility of the information reported.
D)To support the opinion expressed in the review engagement report.

Question

Quizplus · Accepted Answer

Having sufficient knowledge of the client's business and industry helps the reviewer assess the plausibility of the information reported, ensuring that the financial statements make sense in the context of the client's operations and industry norms.

Why Is Having Sufficient Knowledge of the Client's Business and Industry