The execution stage of an audit involves:
A) evaluating the results of the detailed testing and forming an opinion on the fair presentation of the client's financial statements.
B) the assessment of the audit firm's quality control procedures.
C) the performance of detailed tests of controls and substantive testing of transactions and accounts.
D) gaining an understanding of the client.

Question

Quizplus · Accepted Answer

The execution stage of an audit involves the performance of detailed tests of controls and substantive testing of transactions and accounts. This is done in order to obtain sufficient and appropriate evidence to support the audit opinion. Option A involves forming an opinion which comes later in the process. Option B involves evaluating the audit firm's quality control procedures, which is part of the overall audit process but not specifically related to the execution stage. Option D relates to gaining an understanding of the client, which is done during the planning stage of the audit.

The Execution Stage of an Audit Involves