The auditor's understanding of the entity
and its environment consists an
understanding of the following aspects:
a. Industry, regulatory and other external
factors, including the applicable financial
reporting framework
b. Nature of the entity, including the
entity's selection and application of
accounting policies
c. Objectives and strategies and the related
business risks that may result in a
material misstatement of the financial
statements
d. All of these.
and its environment consists an
understanding of the following aspects:
a. Industry, regulatory and other external
factors, including the applicable financial
reporting framework
b. Nature of the entity, including the
entity's selection and application of
accounting policies
c. Objectives and strategies and the related
business risks that may result in a
material misstatement of the financial
statements
d. All of these.