After fieldwork audit procedures are completed, a partner of the CPA firm who has not been involved in the audit performs a second or wrap-up review of the working papers. This second review usually focuses on
A) The audit report, financial statements, and footnotes for consistency.
B) Irregularities involving the entity's management and its employees.
C) The materiality of the adjusting entries proposed by the audit staff.
D) The communication of internal control weaknesses to those charged with governance.

Question

Quizplus · Accepted Answer

The second review or wrap-up review usually focuses on the consistency of the audit report, financial statements, and footnotes to ensure that they accurately reflect the findings of the audit. This review also ensures that the working papers are complete, that all necessary audit procedures have been performed, and that the auditor's conclusions are well-supported by the evidence.  Option B is incorrect because irregularities involving the entity's management and employees are usually uncovered during the audit and not during the wrap-up review. Option C is incorrect because materiality of adjusting entries is considered during the fieldwork audit procedures. Option D is incorrect because the communication of internal control weaknesses to those charged with governance is typically done during the fieldwork audit procedures, not the wrap-up review.

After Fieldwork Audit Procedures Are Completed, a Partner of the CPA