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

question 29

Multiple Choice

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 yearend financial statements for the current year.
• D)Reviewing prior year working papers and permanent file documents.

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Definitions:

Stimulant

A type of drug that increases activity in the nervous system, leading to increased alertness, attention, and energy.

Euphoria

A state of intense happiness and self-confidence, sometimes artificially induced by the use of drugs or when experiencing certain psychological states.

Recreational Drug

Substances taken for enjoyment, rather than for medical reasons, which can alter perceptions, feelings, or consciousness.

Psychological Dependence

A form of dependence characterized by emotional–mental cravings for a substance or behavior, often in the absence of physical dependency.