Audit Documentation of the Evidence Gathered by the Auditor Should

question 121

Multiple Choice

Audit documentation of the evidence gathered by the auditor should meet which of the following criteria?

• A) Workpapers are prepared in sufficient detail so that they can be given to the client for future reference.
• B) The content is sufficient to provide support for the auditor's opinion, including the auditor's representation as to compliance with auditing standards.
• C) Audit evidence is principally gathered to determine if the client's financial statements, as prepared by management, can be relied upon to make managerial decisions about the firm.
• D) Audit evidence as displayed in the workpapers is primarily performed to protect the auditing firm in the case of a lawsuit by investors.

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Definitions:

Traditional Review

A conventional method of evaluating work performance, typically conducted annually by managers or supervisors.

Flexible Working Arrangements

Work setups that allow employees flexibility in determining their work hours, location, or schedule to better accommodate personal needs and improve work-life balance.

Telecommuting

Working from a remote location outside of the conventional office space, often from home, using the internet and telecommunications technology.

Compressed Workweeks

A work schedule that allows an employee to work a full number of hours per week in fewer days than the typical five-day workweek.