Prior to Beginning the Fieldwork on a New Audit Engagement

Multiple Choice

Prior to beginning the fieldwork on a new audit engagement in which the audit team does not possess expertise in the industry in which the client operates, the audit team should:

A) reduce audit risk by lowering the preliminary levels of materiality.
B) design special substantive tests to compensate for the lack of industry expertise.
C) engage financial experts familiar with the nature of the industry.
D) obtain knowledge of matters that relate to the nature of the entity's business.