Question

Prior to commencing field work, an auditor usually discusses the general audit strategy with the client's management. Which of the following details do management and the auditor usually agree upon at this time?

• A. The specific matters to be included in the communication with the audit commitee.
• B. The minimum amount of misstatements that may be considered to be at reportable conditions.
• C. The schedules and analysis that the client's staff should prepare.
• D. The effects that inadequate controls may have over the safeguarding of assets.

Answer 1

The correct option is C The schedules and analysis that the client's staff should prepare.

A prior discussion of schedules creates a smooth functioning of the various procedures to be undertaken by the auditor.

The other three options, a, b and d are not in line with the auditor's duties.