What client information is needed by auditors in creating lead schedules?
A) Interim statements prepared by the client for the company's 3rd quarter financial results.
B) General ledger information, including unadjusted ending balances and beginning balances for accounts.
C) A schedule of adjusting entries made by the client for all balance sheet accounts.
D) Detailed transaction information that may explain the changes in balance sheet accounts for the current year under audit.

Question

Quizplus · Accepted Answer

In creating lead schedules, auditors would need general ledger information, including unadjusted ending balances and beginning balances for accounts, as it serves as the starting point for the audit process. The other options may be helpful but are not specifically relevant to creating lead schedules. Interim statements could be useful but may not provide a comprehensive view of the client's financial situation, while adjusting entries and detailed transaction information are more relevant to adjusting and testing account balances.

What Client Information Is Needed by Auditors in Creating Lead