Cimco Forest is a client of your PA firm that has requested that the audit of its financial statements be completed 25 days after its year end.Given the time constraint,the auditor
A)should not accept Cimco as a client.
B)should increase the size of the audit team.
C)can perform audit procedures at an interim date and roll forward the interim balances to year end.
D)should change the audit program to include more tests of controls and fewer tests of details,as they are more time consuming.

Question

Quizplus · Accepted Answer

Performing audit procedures at an interim date and rolling forward the interim balances to year end is a common practice when time constraints impact the completion of an audit. This allows the auditor to begin testing earlier and obtain audit evidence to support financial statements. It is important for the auditor to ensure that the interim procedures are sufficient and meet auditing standards. While increasing the size of the audit team or changing the audit program could help manage time constraints, these options may not be feasible in all circumstances and may not be the best solution for this particular client. Refusing the client altogether (option A) is not recommended since it is a drastic measure and could have negative professional and ethical implications.

Cimco Forest Is a Client of Your PA Firm That