When gaining an understanding of the client at the industry level, the auditor will: a. consider the level of demand for the goods provided by companies in the industry. b. determi... When gaining an understanding of the client at the industry level, the auditor will: a. consider the level of demand for the goods provided by companies in the industry. b. determine if the client has centralized or decentralized operations. c. assess the amount of faulty goods the client returns to suppliers. d. determine if the client has a simple or complex capital structure.
Understand the Problem
The question is asking what actions an auditor should take to gain an understanding of a client at the industry level. It presents various options related to demand, operational structure, faulty goods, and capital structure.
Answer
Consider the level of demand for the goods provided by companies in the industry.
The final answer is to consider the level of demand for the goods provided by companies in the industry.
Answer for screen readers
The final answer is to consider the level of demand for the goods provided by companies in the industry.
More Information
Understanding demand levels helps the auditor assess industry trends and the client's competitive positioning.
Tips
Avoid focusing only on company internal aspects like operations or capital structure when evaluating at the industry level.
Sources
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