Audit Documents That Record the Procedures Used by the Auditor

question 22

Multiple Choice

Audit documents that record the procedures used by the auditor to gather evidence should be:

• A)considered the primary support for the financial statements being examined.
• B)viewed as the connecting link between the accounting records and the financial statements.
• C)designed in an orderly fashion to facilitate the review of audit work by the senior, manager, and partner on the engagement.
• D)retained until the audited entity ceases to be a client.

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Definitions:

Lakeside Property

Real estate located adjacent to a lake, often highly valued for its views and access to water activities.

Reimbursement

The act of compensating someone for an expense already incurred by them.

Agency Relationship

A legal arrangement in which one party (the agent) acts on behalf of another (the principal) in dealings with third parties.

Fulfillment

The process of completing or carrying out a task, order, or obligation to its final conclusion.