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Why is it important for an audit firm to understand their prospective client's environment?

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Prospective client's environment is discussed very comprehensively in this explanation..

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Why is it important for an audit firm to understand their prospective client's environment?

It is important to understand their prospective client's environment to understand the business methods being used. The financial transactions those are normal in that environment. The overall profitability of businesses in that ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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