What is a primary method for obtaining knowledge of a client's business?

The primary method for obtaining knowledge of a client's business is through touring client facilities. This direct approach allows auditors to observe operations firsthand, understand the environment in which the client conducts its business, and gain insights into processes, systems, and controls. By visiting the facilities, auditors can ask questions, interact with staff, and see how the business functions in practice, which enhances their understanding far beyond what can be gathered from documents or reports.

While reviewing competitor financials, reading industry reports, and analyzing stock trends can provide valuable context and industry benchmarks, they are more indirect methods of gathering information. These alternatives may not convey the unique aspects of a specific client's operations, practices, or challenges as effectively as an on-site visit. Thus, the immersive experience gained from touring client facilities makes it the most effective method for understanding a client's business in detail.