An auditor obtains knowledge about a new client's business and its industry in order to Group of answer choices Make constructive suggestions concerning improvements to the client's internal control. Develop an attitude of professional skepticism concerning management's financial statement assertions. Evaluate whether the aggregation of known misstatements causes the financial statements taken as a whole to be materially misstated. Understand the events and transactions that may have an effect on the client's financial statements.

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)