When the audit is an initial engagement, the auditor needs to ensure that:
A) opening balances do not contain misstatements that materially affect the current period's financial statements.
B) the previous period's closing balances have been correctly brought forward.
C) appropriate accounting policies are consistently applied.
D) all of the above.

Question

Quizplus · Accepted Answer

All of the choices are correct as they are essential considerations for an auditor in an initial engagement to ensure the accuracy and consistency of the financial statements from one period to the next.

When the Audit Is an Initial Engagement, the Auditor Needs