Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. what is the primary objective of obtaining an u

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

80.2K

Verified Solution

Question

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.

Answer & Explanation Solved by verified expert
4.2 Ratings (626 Votes)
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
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

In the period since the financial crisis of 2007-2009, inflation has been low in many countries,...

Finance
Q

An incumbent city official was running for another term. She was interested in determining whether the...

Basic Math
Q

Question 5a Oxygen gas dissolves in lake water. (This is how fish get the oxygen they need...

Chemistry
Q

An animal in our JunglePark application needs to check whether another animal is in its neighborhood...

Mechanical Engineering
Q

Simplify by taking roots of the numerator and denominator Assume that all expressions under the...

Basic Math
Q

The hole for a footing needs to be 7 ft deep. If it is currently...

Basic Math
Q

A company invests in a 6 month, 8% note for $24,000 on October 1, 2019....

Accounting
Q

On September 17 2013 Z a component of the lentity according to generally accepted accounting...

Accounting
Q

The 2021 financial statements for Kohl's Corporation are provided for you. The Balance Sheet includes...

Accounting
Q

Smith Media Corporation had tho following income statoment and balance sheet for 2024 : (Click...

Accounting
Q

3. (i) Define the functions and properties of money. (ii) According to the popular use...

Finance
Q

What is the NPV of the following set of cash flows if the required return...

Finance