Mary Deming has been asked to accept an engagement to audit a small financial institution. Deming has not previously audited a financial institution.
Required:
a. Describe the types of knowledge about the prospective client and its environment that Deming should obtain to plan the engagement.
b. Explain how Deming may obtain this knowledge.
c. Discuss how this knowledge of the client and its environment will help Deming in planning and performing an audit in accordance with auditing standards.
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