Which of the following is not a consideration for an auditor while "scaling" the audit?
A) The client company has multiple locations throughout the region.
B) Another firm is responsible for auditing one of the client's out-of-town subsidiaries.
C) An outside service provider prepares all of the client company's payroll accounting records.
D) The client company plans to hire and develop employees so that it can prepare its payroll accounting records in-house within the next two years.

Question

Quizplus · Accepted Answer

Scaling the audit refers to adjusting the audit approach based on the size and complexity of the company being audited. The client company's future plans to prepare payroll accounting records in-house do not affect the current audit's scope or approach, making it not a consideration for scaling the current audit. Choices A, B, and C involve factors that could affect the complexity and risk of the current audit, thus are considerations for scaling.

Which of the Following Is Not a Consideration for an Auditor