An auditor obtains knowledge about a new client's business and its industry in order to:
A. understand the events and transactions that may have an effect on the client's financial statements.
B. evaluate whether the aggregation of known misstatements causes the financial statements taken as a whole to be materially misstated.
C. develop an attitude of professional skepticism concerning management's financial statement assertions.
D. make constructive suggestions concerning improvements to the client's internal control.
Answer: A
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