With respect to the auditor's planning of a year- end examination, which one of the following statements is ALWAYS true?
A) An engagement should not be accepted after the financial year ends.
B) The client's audit committee should not be told of the specific audit procedures that will be performed.
C) It is an acceptable practice to carry out substantial parts of the examination at interim dates.
D) An inventory count must be observed at the balance sheet date.

Question

Quizplus · Accepted Answer

It is an acceptable practice to carry out substantial parts of the examination at interim dates. This allows the auditor to gather information and perform testing throughout the year, rather than just at the end of the financial year. However, it is important for the auditor to assess the risks associated with this approach and determine the appropriate extent of testing at the interim date versus the year-end. Choices A, B, and D are not always true and are dependent on the specific circumstances of the audit engagement.

With Respect to the Auditor's Planning of a Year- End