Before the impact of adjusting entries proposed by auditors are included in the client's financial statements,the adjustments must be approved by the
A)Client's management.
B)Audit manager.
C)Engagement partner.
D)Engagement quality review partner.

Question

Quizplus · Accepted Answer

The client's management is responsible for the preparation of financial statements and has the authority to approve all adjustments made by the auditors. Before the adjustments are included in the financial statements, the client's management must approve them. While the audit manager, engagement partner, and engagement quality review partner all play important roles in the audit process, they do not have the authority to approve adjustments to the financial statements of the client.

Before the Impact of Adjusting Entries Proposed by Auditors Are