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Answer the following questions
1. how much information should go into the documentation. Based on your understanding of the issues in this section, do you think the auditor should include more material than necessary just to protect him/herself? What are the pros and cons of such a policy? 2. In this chapter, different types of evidence are discussed. If outside evidence is more reliable than evidence from the company, should the auditor plan to obtain only outside evidence to get the most reliable results? Why or why not? 3. The book mentions that it is necessary for the auditor to understand the client's business. Why is that the case? How does classifying the client into a safe or risky category affect the audit? Do you think auditors should still accept clients in high risk industries? If yes, why? If not, who would audit them? 4. Why do you think related party transactions are particularly difficult to audit? What are the risks involved? How can the auditor resolve these risks?
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