Auditors can assess the adequacy of their client's closing procedures by:
A)Checking the accuracy of accruals calculations around year-end.
B)Looking at earnings trends to assess whether reported income is in line with similar periods in prior years.
C)A and B.
D)None of the above.

Question

Quizplus · Accepted Answer

Checking the accuracy of accruals calculations around year-end is an important part of the closing process and can help auditors assess the adequacy of their client's procedures. Looking at earnings trends can also provide valuable information and help the auditor determine whether reported income is consistent with prior periods. Therefore, both options A and B are valid ways for auditors to assess the adequacy of their client's closing procedures.

Auditors Can Assess the Adequacy of Their Client's Closing Procedures