The final phase of an audit includes which of the following?
A) performing substantive tests of account balances
B) gaining an understanding of the client's internal control system
C) confirming the terms of the audit engagement with the auditor
D) determining whether the audit evidence obtained is sufficient and appropriate to reduce the risk of material misstatements in the financial statements to an acceptably low level

Question

Quizplus · Accepted Answer

The final phase of an audit is to determine whether the audit evidence obtained is sufficient and appropriate to reduce the risk of material misstatements in the financial statements to an acceptably low level. This is done by evaluating the audit evidence obtained during the audit, considering the results of all audit procedures performed, and forming the audit opinion on the financial statements. The other options listed are typically done earlier in the audit process.

The Final Phase of an Audit Includes Which of the Following