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