An Auditor Who Accepts an Audit Engagement and Does Not

Multiple Choice

An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity should:

A) engage financial experts familiar with the nature of the business entity.
B) obtain knowledge of matters that relate to the nature of the entity's business.
C) refer a substantial portion of the audit to another auditor, who will act as the principal auditor.
D) first inform management that an unmodified auditor's opinion cannot be issued.