Which of the following procedures would an auditor most likely include in the initial planning of a financial statement audit?
A)Perform detailed testing of the individual balance sheet accounts.
B)Examining documents to detect illegal acts having a material effect on the financial statements.
C)Considering whether the client's accounting estimates are reasonable in the circumstances.
D)Determining the extent of involvement of the client's internal audit function.

Question

Quizplus · Accepted Answer

In the initial planning of a financial statement audit, an auditor would determine the extent of involvement of the client's internal audit function to understand how it might affect the audit process and to plan the audit accordingly.

Which of the Following Procedures Would an Auditor Most Likely