With Respect to Understanding the Client's Revenue Process, It Is

Multiple Choice

With respect to understanding the client's revenue process, it is particularly important that the auditor ________.

A) makes some preliminary inquiries with the client's attorney
B) be knowledgeable about the entity, how the entity earns revenues, and particular revenue recognition issues that may be relevant to the entity
C) examines other firms within the client's industry to determine acceptable practices
D) uses accounting standards as an optional guide to determining what the client should be recording