Checking the accuracy of accrual calculations around year-end is an example of how auditors can assess the adequacy of their client's closing procedures.
A) risk identification and strategy
B) understanding the client
C) risk and materiality assessment
D) all of the above

Question

Quizplus · Accepted Answer

Checking the accuracy of accrual calculations around year-end involves both understanding the client's accounting procedures and assessing the risk and materiality of potential errors or misstatements. By doing so, auditors can identify relevant risks and develop an appropriate audit strategy to address them. Therefore, option A and C are correct as well. Thus, the best answer is D.

Checking the Accuracy of Accrual Calculations Around Year-End Is an Example