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

question 78

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 statements being examined.
• C) Audit documents should be considered as a substitute for the company's accounting records.
• D) Audit documents should be designed to facilitate the review and supervision of work done by auditors assigned to the engagement.

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Definitions:

Standing to Sue

The legal right of an individual or entity to initiate a lawsuit, contingent upon having a sufficient connection to and harm from the law or action challenged.

Jurisdiction

The official power or authority to make legal decisions and judgments, often within a specified geographic area or over certain types of legal cases.

Supreme Court

The highest judicial court in the United States, consisting of nine Justices and having ultimate appellate jurisdiction.

Precedent

A principle or rule established in a previous legal case that is either binding on or persuasive for a court when deciding subsequent cases with similar issues or facts.