Identify the way in which the audit files are primarily considered to be.

Question

Want to see the full answer?

Answer 1

Question

Chapter 7, Problem 23.2MCQ

To determine

Identify the way in which the audit files are primarily considered to be.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

The preparation of audit documentation is an integral part of an auditor’s examination of financial statements. On a recurring engagement, auditors review the audit plans and audit documentation from the prior audit while planning the current audit to determine their usefulness for the current-year work.Required:a. (1) What are the purposes or functions of audit documentation? (2) What records may be included in audit documentation?b. What factors affect the auditors’ judgment of the type and content of the audit documentation for a particular engagement?c. What should be included in audit documentation to support auditors’ compliance with generally accepted auditing standards?d. How can auditors make the most effective use of the prior-year audit plans in a recurring audit?

During an audit engagement, pertinent data are compiled and included in the auditfiles. The audit files primarily are considered to be(1) a client-owned record of conclusions reached by the auditors who performedthe engagement.(2) evidence supporting financial statements.(3) support for the auditor’s representations as to compliance with auditing standards.(4) a record to be used as a basis for the following year’s engagement

When initiating communications with predecessor auditors, prospective auditors should expecta. To take responsibility for obtaining the client’s consent for the predecessor to give information about prior audits.b. To conduct interviews with the partner and manager in charge of the predecessor publicaccounting firm’s engagement.c. To obtain copies of some or all of the predecessor auditors’ audit documentation.d. All of the above.