Characteristics that drive a need for extensive audit documentation include:
A) the audit task is very straightforward and objective.
B) the management assertion related to the audit task involves a lot of risk.
C) the management assertion related to the audit task has been extensively tested by the company's internal auditors.
D) the audit task involves a conclusion that is self-evident.

Question

Quizplus · Accepted Answer

Extensive audit documentation is needed when there is a high level of risk involved in the management assertion related to the audit task. This is because the riskier the assertion, the more evidence the auditor will need to gather to support their opinion. A straightforward and objective audit task or a self-evident conclusion would likely not require extensive audit documentation. The fact that the management assertion has been extensively tested by the company's internal auditors may provide some assurance, but it does not necessarily eliminate the need for the auditor to conduct their own independent testing and documentation.

Characteristics That Drive a Need for Extensive Audit Documentation Include