The Auditor Should Document the Audit Strategy in the Form

question 70

Multiple Choice

The auditor should document the audit strategy in the form of a memorandum containing the key decisions about the scope,timing,and conduct of the audit.This documentation

• A)includes a list of the key decisions necessary to perform testing
• B)is a recommended part of the work papers
• C)communicates the planning process to engagement team members
• D)provides the basis for the audit report to address the important issues identified in the audit strategy

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Definitions:

Misstatement

An error or inaccuracy in stating facts or details, often found in financial accounts or reports.

GAAS

Generally Accepted Auditing Standards; guidelines that auditors follow when conducting audits on companies' financial statements.

GAAP

Stands for Generally Accepted Accounting Principles, a set of accounting standards and practices used in the United States to ensure consistency and transparency in financial reporting.

Opinion Letter

A document issued by an auditor after the completion of auditing financial statements. This letter expresses whether the audit has been performed in compliance with Generally Accepted Auditing Standards (GAAS) and whether, in the auditor’s opinion, the financial statements fairly present the client’s financial position and results of operations in conformity with Generally Accepted Accounting Principles (GAAP).