In preparing for a repeat engagement,the first thing an audit team should do is ________.
A)interview client management for any changes in the business and industry
B)take a tour of a client's physical facilities,noting obvious inventory obsolescence or equipment maintenance issues
C)obtain a copy of the year-end financial statements for the current year
D)review prior-year working papers and permanent file documents

Question

Quizplus · Accepted Answer

In preparing for a repeat engagement, the audit team should review prior-year working papers and permanent file documents to understand the client's business and the previous audit procedures performed. This will help the team plan the current year's audit and identify any changes or risks that need to be addressed. While interviewing client management and taking a tour of physical facilities may also be helpful, they should come after the review of prior-year working papers and files. Obtaining a copy of the year-end financial statements may also be important, but it can be done concurrently with the review of prior-year working papers.

In Preparing for a Repeat Engagement,the First Thing an Audit