With respect to the auditor's planning of a year-end audit, which of the following statements is always true?
A) An engagement should not be accepted after the fiscal year-end.
B) An inventory count must be observed at the balance sheet date.
C) The client's audit committee should not be told of any specific audit procedures which will be performed.
D) It is an acceptable practice to carry out parts of the examination at interim dates.

Question

Quizplus · Accepted Answer

It is an acceptable practice to carry out parts of the examination at interim dates. This is known as an interim audit and can be useful in identifying any potential issues early on in the audit process. Options A, B, and C are not always true and depend on the specific circumstances of the audit engagement.

With Respect to the Auditor's Planning of a Year-End Audit