Audit Documentation Should Be Prepared in Enough Detail So That

question 948

Multiple Choice

Audit documentation should be prepared in enough detail so that:

• A) An experienced auditor who has worked with the client in the past can understand the procedures performed and the evidence obtained.
• B) A reader of the financial statements who has no previous connection with the audit can understand the procedures performed and the evidence obtained.
• C) A reader of the financial statements who has a background in financial analysis can understand the procedures performed and the evidence obtained.
• D) An experienced auditor who has no previous connection with the audit can understand the procedures performed and the evidence obtained.

---

Definitions:

Flynn Effect

A term describing the observed substantial and long-term increase in both fluid and crystallized intelligence test scores measured in many parts of the world over the 20th century.

Predictive Validity

The extent to which a score on a scale or test predicts future performance or behavior.

Intrapersonal Intelligence

Intrapersonal intelligence is the capacity to understand oneself, including one's emotions, motivations, and thoughts.

Creative Intelligence

The ability to go beyond existing ideas to create novel and interesting ones, a component of Sternberg's triarchic theory of intelligence.