The first step to be followed when deciding the appropriate audit report in a given set of circumstances is to:
A) decide the appropriate type of report for the condition
B) write the report.
C) determine whether any conditions exist requiring a departure from a standard unqualified report.
D) decide the materiality for each condition.

Question

Quizplus · Accepted Answer

Before deciding the appropriate type of report, it is necessary to determine if there are any conditions that require departure from a standard unqualified report, such as material misstatements or limitations on scope. Only after considering these factors can the appropriate type of report be selected and written. Therefore, option C is the correct first step. Option A, deciding the appropriate type of report, comes after this consideration. Option B, writing the report, comes after the decision on the appropriate type of report. Option D, deciding materiality, is not the first step in determining the appropriate audit report.

The First Step to Be Followed When Deciding the Appropriate