1. What is the primary objective of obtaining an understanding of the company's objectives, strategies, and...

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Accounting

1. What is the primary objective of obtaining an understandingof the company's objectives, strategies, and related business risksin a financial statement audit?
a. Determine whether sufficient objectives have beencreated.
b. Identify suggestions for addressing the risks.
c. Provide a basis for issuing an opinion the financialstatements.
d. Identify risks that may result in material misstatement offinancial statements.

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The objective of the auditor is to identify and appropriately assess the risks of material misstatement thereby providing a basis for designing and implementing responses to the risks of material misstatement The auditor should obtain an understanding of the company and its environment understanding of the company to understand the events conditions and company activities that might reasonably be expected to have a significant effect on the risks of material misstatement Obtaining an understanding of the company includes understanding Relevant industry regulatory and other external factors The nature of the company The companys selection and application of accounting principles including related disclosures The companys objectives and strategies and See Answer

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