The final phase of an audit includes which of the following:
A)confirming the terms of the audit engagement with the auditor.
B)performing substantive tests of account balances.
C)gaining an understanding of the client's internal control system.
D)determining whether the audit evidence obtained is sufficient and appropriate to reduce the risk of material misstatements in the financial report to an acceptably low level.

Question

Quizplus · Accepted Answer

The final phase of an audit involves determining whether the audit evidence obtained is sufficient and appropriate to reduce the risk of material misstatements in the financial report to an acceptably low level. This step is necessary to ensure that the financial statements are reliable and can be used by stakeholders to make informed decisions. Other phases such as confirmation of engagement terms, substantive tests, and understanding internal control systems occur earlier in the audit process.

The Final Phase of an Audit Includes Which of the Following