The Auditors Are Planning an Audit Engagement for a New

Multiple Choice

The auditors are planning an audit engagement for a new client.The business of the client is unfamiliar to the auditors.Which of the following would be the most useful source of information for the auditors when they are trying to obtain a general understanding of audit problems that could be encountered?

A) Client manuals of accounts and charts of accounts.
B) AICPA Industry Audit Guides.
C) Prior-year working papers of the predecessor auditors.
D) Latest annual and interim financial statements issued by the client.