When a CPA has accepted an engagement from a new client who is amanufacturer, it is customary for the CPA to tour the client’s plant facilities. Discuss theways in which the CPA’s observations made during the course of the plant tour will be ofhelp in planning and conducting the audit.

When a CPA has accepted an engagement from a new client who is amanufacturer, it is customary for the CPA to tour the client’s plant facilities. Discuss theways in which the CPA’s observations made during the course of the plant tour will be ofhelp in planning and conducting the audit.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Activities Required In Completing A Quality Audit

Section: Chapter Questions

Problem 16TFQ

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Question

When a CPA has accepted an engagement from a new client who is a
manufacturer, it is customary for the CPA to tour the client’s plant facilities. Discuss the
ways in which the CPA’s observations made during the course of the plant tour will be of
help in planning and conducting the audit.

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