Prior to beginning fieldwork on a new audit
engagement in which a CPA does not
possess industry expertise, the CPA should
a. Obtain knowledge of matters that
relate to the nature of the entity's
business and industry.
b. Reduce audit risk by lowering the
preliminary levels of materiality.
c. Engage financial experts who are familiar
with the nature of the industry.
d. Design special substantive tests to
compensate for the lack of industry
expertise.
engagement in which a CPA does not
possess industry expertise, the CPA should
a. Obtain knowledge of matters that
relate to the nature of the entity's
business and industry.
b. Reduce audit risk by lowering the
preliminary levels of materiality.
c. Engage financial experts who are familiar
with the nature of the industry.
d. Design special substantive tests to
compensate for the lack of industry
expertise.