The initial phase of a financial statement audit involves the acceptance decision for the client in question. Which of the following is not a consideration during this phase of the audit:
A) ethical considerations.
B) client evaluation.
C) preparation of the engagement letter.
D) determining the existence of related parties.

Question

Quizplus · Accepted Answer

Determining the existence of related parties is typically not part of the initial client acceptance decision phase of an audit. It is a consideration that usually comes later in the audit process, during the planning or execution phases, when auditors assess risks and gather evidence.

The Initial Phase of a Financial Statement Audit Involves the Acceptance