Question

When an auditor updates his or her understanding of the entity and its environment, ________.1choices each audit should be viewed with respect to the current audit of other clients 2 the auditor should be sure that senior management agrees with the auditor's understanding, and modify appropriately if not 3 each audit should be viewed identically to previous audits 4 each audit should be viewed independently from previous audits

Answer 1

Whenever an auditor updates his understanding of the entity and its environment he should view each Audit independently from the previous audit as per his understanding

Current audit of other client do not play any role in the audit of the entity as its working and environment is totally different.

If the senior management do not agree with the auditor understanding then and the auditor should know the reason and only if he is satisfied with the explanation of management then only he should modify it.

Audit should not be connected to the previous audit as every audit is independently different from each other.

So the correct answer is 4 i.e. each Audit should be viewed independently from previous audits