Audit Documents Record the Results of the Auditor's Evidence-Gathering Procedures

question 15

Multiple Choice

Audit documents record the results of the auditor's evidence-gathering procedures.When preparing audit documents, the auditor should remember that:

• A)audit documents should be kept on the client's premises so that the client can have access to them for reference purposes.
• B)audit documents should be the primary support for the financial report being examined.
• C)audit documents should be considered as a substitute for the client's accounting records.
• D)audit documents should be designed to meet the circumstances and the auditor's needs on each engagement.

---

Definitions:

Business Products

Goods and services that are purchased by organizations for use in their operations, production, or to be resold to other customers.

Consumer Products

Items produced for personal use by the general public.

Commercialization

The process of introducing a new product or production method into the market, turning inventions into commercial products.

Full-Scale Production

The phase in which a product is manufactured at its highest capacity, often after successful prototypes and pilot runs, to meet the demand in the market.