Most Audits of a Company Are Done Annually by the Same

question 60

Multiple Choice

Most audits of a company are done annually by the same audit firm.Except for initial engagements, the auditor begins the audit with a great deal of information about the client's internal controls developed in prior years.Because systems and controls usually don't change frequently:

• A) it eases the burden on the auditor's requirement to do a complete study of the controls this year.
• B) the auditor can skip the evaluation of this area on repeat engagements.
• C) it is sufficient for the auditor just to inquire of the client whether the controls have been changed since last year.
• D) this information can be updated and carried forward to the current year's audit.

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