The most likely uses of the financial statements can be determined from:
A) inquiries with ASIC and the ASX.
B) reviewing the terms of the engagement as set out in the engagement letter.
C) reviewing the minutes of meetings.
D) previous experience with the auditee and discussions with management.

Question

Quizplus · Accepted Answer

The most likely uses of the financial statements are determined through previous experience with the auditee and discussions with management. This provides the auditor with knowledge of the nature of the auditee's business activities, accounting policies, and systems of internal control. Inquiries with ASIC and the ASX, reviewing the terms of the engagement, and reviewing the minutes of meetings may provide additional information, but they are not the most likely sources for determining the uses of the financial statements.

The Most Likely Uses of the Financial Statements Can Be