Question

The first standard of field work recognizes that early appointment of the independent auditor has many advantages to the auditor and the client. Which of the following advantages is least likely to occur as a result of early appointment of the auditor?

• A. The auditor will be able to complete the audit work in less time.
• B. The auditor will be able to perform the examination more efficiently.
• C. The auditor will be able to better plan for the observation of the physical inventories.
• D. The auditor will be able to plan the audit work so that it may be done expeditiously.

Answer 1

The correct option is A The auditor will be able to complete the audit work in less time.

Time is a constraint for any auditor since 100% checking or auditing of all the items in financial statement is not possible, under any circumstances.

In the given case, even if the appointment is done well in advance, the volume and other aspects are equally important to be considered than just time factor.