Which of the following normally occurs earliest in the audit examination?
A) Discovery of an omitted audit procedure.
B) Dual dating the auditors' report on the entity's financial statements for subsequent events that exist at the date of the financial statements.
C) Preparation of the management letter.
D) Review of audit documentation.

Question

Quizplus · Accepted Answer

The review of audit documentation typically occurs earliest in the audit examination because it provides the auditor with an understanding of the entity's accounting system, internal control, and procedures. This understanding is necessary to plan the audit and determine the nature, timing, and extent of audit procedures to be performed. Discovery of an omitted audit procedure, dual dating the auditors' report, and preparation of the management letter are all later stages in the audit examination.

Which of the Following Normally Occurs Earliest in the Audit