In order to properly plan and perform an audit, an important fact for both the auditor and the client to understand is that
A) the internal control policies and procedures are developed by the auditors.
B) the purpose of an audit is to prevent fraud.
C) management is responsible for the preparation of the financial statements.
D) management can restrict the auditor's access to important information relevant to the financial statements.

Question

Quizplus · Accepted Answer

It is important for both the auditor and the client to understand that management is responsible for the preparation of the financial statements. This understanding helps to establish clear roles and responsibilities in the audit process and allows the auditor to focus on evaluating the financial statements prepared by management. The other options (A, B, D) are incorrect because internal control policies and procedures are typically established by the client, the purpose of an audit is not only to prevent fraud but also to provide assurance on the accuracy of financial statements, and the auditor should have unrestricted access to important information relevant to the financial statements.

In Order to Properly Plan and Perform an Audit, an Important