To adequately plan an audit, the auditor should obtain sufficient knowledge of the client's business to understand events, transactions, and practices that may have a significant effect on the financial statements. The auditor needs knowledge about, for example, the type of business, including products and services, company locations, and marketing methods.
Please answer the following questions
1. List at least four additional items about which the auditor should be knowledgeable.
2. List at least four audit procedures that would normally be used in obtaining this understanding.
3. How would the auditor use this information in performing a financial statement audit?