When the Auditor Considers Whether He or She Understands the Form

Multiple Choice

When the auditor considers whether he or she understands the form and substance of the transaction or event, and whether the relevant authoritative literature has been applied consistently by the client, he or she is performing which step in the professional judgment process?

A) identifying and defining the issue
B) performing the analysis and identifying potential alternatives
C) making the decision
D) gathering the facts