An auditor obtains an understanding of the
entity and its environment in order to
a. Make constructive suggestions
concerning improvements to the client's
internal control.
b. Understand the events and
transactions that may have an effect
on the client's financial statements.
c. Evaluate whether the aggregation of
known misstatements causes the
financial statements taken as a whole to
be materially misstated.
d. Develop an attitude of professional
skepticism concerning management's
financial statement assertion
entity and its environment in order to
a. Make constructive suggestions
concerning improvements to the client's
internal control.
b. Understand the events and
transactions that may have an effect
on the client's financial statements.
c. Evaluate whether the aggregation of
known misstatements causes the
financial statements taken as a whole to
be materially misstated.
d. Develop an attitude of professional
skepticism concerning management's
financial statement assertion