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NEW QUESTION: 1
To obtain an understanding of a continuing client's business in planning an audit, an auditor most likely
would:
A. Perform tests of details of transactions and balances.
B. Reevaluate the client's internal control environment.
C. Read specialized industry journals.
D. Review prior-year audit documentation and the permanent file for the client.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. Knowledge of an entity's business is ordinarily obtained through experience with the
entity or its industry and inquiry of personnel of the entity. Audit documentation from prior years may
contain useful information about the nature of the business, its organizational structure, its operating
characteristics, and transactions that may require special consideration.
Choice "A" is incorrect. Tests of details of transactions and balances are not performed during the planning
stage of an audit.
Choice "C" is incorrect. Reading industry journals would provide information about the industry in which
the entity operates, but reviewing prior-year audit documentation and the permanent file would provide a
more thorough understanding of the specific client's business.
Choice "D" is incorrect. The client's internal control is not reevaluated during the planning stage of an
audit.
NEW QUESTION: 2
Where do you verify the time it takes a Report Database copy to complete?
A. in Storage Essentials under System Tasks in the Task Dashboard
B. in Storage Essentials underConfiguration>Reports>Report Cache Last Refresh Status
C. in Report Optimizer using the Report Database Reports
D. in the Report Database Admin Utility under Check Report Database Status
Answer: C
NEW QUESTION: 3
Refer to the exhibit. What device is this taken from?
A. firewall
B. IDS
C. web proxy
D. NetFlow
Answer: A
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