The following steps are taken during the evaluation of the audit findings:
A: Making technical review of financial statements
B: Making final review(s) of working papers
C: Making final assessment of materiality and audit risk
D: Formulating opinion and drafting audit report
The order in which these steps should be performed is:
A) ABCD.
B) DCAB.
C) CABD.
D) BACD.

Question

The following steps are taken during the evaluation of the audit findings: 
A: Making technical review of financial statements
B: Making final review(s) of working papers
C: Making final assessment of materiality and audit risk
D: Formulating opinion and drafting audit report
 The order in which these steps should be performed is:
A) ABCD.
B) DCAB.
C) CABD.
D) BACD.

Quizplus · Accepted Answer

CABD is the correct sequence for evaluating audit findings. Initially, a final assessment of materiality and audit risk (C) is made to ensure that the audit has covered all significant areas. Next, a technical review of financial statements (A) is conducted to ensure that they comply with the relevant accounting standards and principles. Following this, a final review(s) of working papers (B) is performed to ensure that all audit evidence is properly documented and supports the conclusions reached. Finally, formulating an opinion and drafting the audit report (D) is done based on the findings from the previous steps.

The Following Steps Are Taken During the Evaluation of the Audit