Juan Dela Cruz has been asked to accept an engagement to audit a small financial institution. Juan Dela Cruz has not been previously audited a financial institution. Required:Describe the types of knowledge about the prospective client and its industry that Juan Dela Cruz must obtain to plan the engagementExplain how Juan Dela Cruz may obtain this knowledgeDiscuss how this knowledge of the client’s business and industry will help Juan Dela Cruz in planning and performing an audit in accordance with auditing standards.

1) Acceptance of audit engagement: Audit engagement should be accepted only after the proper…

Answered: Juan Dela Cruz has been asked to accept…

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Activities Required In Completing A Quality Audit

Section: Chapter Questions

Problem 49MCQ

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Juan Dela Cruz has been asked to accept an engagement to audit a small financial institution. Juan Dela Cruz has not been previously audited a financial institution.

Required:

Describe the types of knowledge about the prospective client and its industry that Juan Dela Cruz must obtain to plan the engagement
Explain how Juan Dela Cruz may obtain this knowledge
Discuss how this knowledge of the client’s business and industry will help Juan Dela Cruz in planning and performing an audit in accordance with auditing standards.

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