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Anonymous futurenurse15
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There are three primary reasons for obtaining a thorough understanding of the client's industry and external environment. What are these reasons?
Textbook 

Auditing and Assurance Services


Edition: 17th
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karisantikarisanti
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More questions for this book are available here
The three reasons are:
Risks associated with specific industries may affect the auditor's assessment of client business risk and acceptable audit risk.
Many risks are typically common to all clients in certain industries. Familiarity with those risks aids the auditor in determining their relevance to the client when assessing client business risk and risk of material misstatement.
Many industries have unique accounting requirements that the auditor must understand to evaluate whether the client's financial statements are in accordance with accounting standards.

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