When an Auditor Agrees to Perform an Audit Because the Preconditions

question 24

Multiple Choice

When an auditor agrees to perform an audit because the preconditions for an audit have been met and the auditor believes that he can gather sufficient appropriate audit evidence to reduce audit risk to an acceptably low level,an engagement letter is prepared.The engagement letter includes:

• A)the basis on which fees are computed are based on an unqualified audit opinion.
• B)arrangements regarding the methods of testing of the audit,including the composition of the audit team.
• C)arrangements concerning the involvement of other auditors and specialists in the audit.
• D)arrangements concerning the opinions of internal auditors and other staff of the company.
• E)arrangements to be made with the predecessor auditor in the case of a follow up audit.

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Definitions:

Beck

Refers to Aaron T. Beck, a psychiatrist known for his work in developing cognitive therapy, now known as cognitive-behavioral therapy (CBT).

Psychosocial History

An individual’s past experiences and personal history regarding social interactions and psychologically significant events, often reviewed in therapeutic settings to better understand current issues.

Emotional Experiencing

The process of becoming fully aware of and expressing one's emotions as a therapeutic practice.

Beck

Refers to Aaron T. Beck, a psychiatrist known for his work in psychotherapy, cognitive therapy, and his research on depression.