When Audit Firms Do an Audit of Historical Financial Statements

question 85

Multiple Choice

When audit firms do an audit of historical financial statements, part of the audit usually consists of identifying operational problems and making recommendations that may benefit the audit client. The recommendations can be made orally but they are typically made by use of:

• A) a client letter.
• B) an engagement letter.
• C) a management letter.
• D) a letter of representation.

---

Definitions:

Oral Probe

A medical or dental tool used to examine the mouth and throat area.

Pulse Rate

The number of heartbeats per minute, a vital sign indicating the health of the heart and the circulatory system.

Beats Per Minute

A unit of measure indicating the number of heartbeats in one minute, often used to monitor heart rate or tempo in music.

Pulse Volume

A measure of the blood flow in an extremity, often used to assess circulation and the health of the vascular system.