Which of the following is the most likely first step that an auditor will perform after accepting an initial audit engagement?
A) Prepare a rough draft of the financial report and of the auditor's report.
B) Assess control risk for the assertions embodied in the financial report.
C) Tour the client's facilities and review the general records.
D) Consult with and review the work of the previous auditor prior to discussing the engagement with the client management.

Question

Quizplus · Accepted Answer

Touring the client's facilities and reviewing the general records would be the most likely first step for an auditor to perform after accepting an initial audit engagement. This helps the auditor to gain an understanding of the client's business and operations, which is necessary for planning the audit and identifying risks that may impact the financial statements. The other options listed would occur later in the audit process.

Which of the Following Is the Most Likely First Step