Which of the following actions 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 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

The most likely first step that an auditor will perform after accepting an initial audit engagement is to tour the client's facilities and review the general records. This step will provide the auditor with a better understanding of the client's business operations, internal control environment, and accounting system. It also helps the auditor to assess the risks of material misstatement and plan the audit accordingly. Therefore, option C is the best choice. Option A is incorrect because the auditor cannot prepare the financial report as this is the responsibility of the client's management. Option B is incorrect because assessing control risk is a part of the planning process and cannot be done without first reviewing the general records. Option D may be done after touring the client's facilities and reviewing the records.

Which of the Following Actions Is the Most Likely First