In Preparing for a Repeat Engagement,the First Thing an Audit

question 42

Multiple Choice

In preparing for a repeat engagement,the first thing an audit team should do is ________.

• A)interview client management for any changes in the business and industry
• B)take a tour of a client's physical facilities,noting obvious inventory obsolescence or equipment maintenance issues
• C)obtain a copy of the year-end financial statements for the current year
• D)review prior-year working papers and permanent file documents

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Definitions:

Associate

A person who is linked with another or others in business or professional activities.

Bar Exam

A professional examination that must be passed to legally practice law in a given jurisdiction.

Corporate Stock

Ownership units in a corporation, represented by shares that can be bought, sold, or traded.

Shareholder

An owner of shares in a company or corporation, giving them certain rights and potential financial benefits.