The nature of audit procedures refers to the ________.
A)reliance on evidence provided by the client and its management
B)use of judgment when preparing financial statements due to the subjectivity required when arriving at accounting estimates
C)materiality of misstatement
D)pressures auditors face to complete their audit within a certain time frame at a reasonable cost

Question

Quizplus · Accepted Answer

The nature of audit procedures refers to the reliance on evidence provided by the client and its management. This includes the methods used to obtain sufficient and appropriate evidence to support the auditor's opinion on the financial statements. Option B refers to the judgement required in preparing financial statements, while option C refers to materiality, which is a concept used in determining the significance of misstatements. Option D refers to the pressures faced by auditors, which may affect their independence and objectivity.

The Nature of Audit Procedures Refers to the ________