The final phase of an audit includwhich 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 includes 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. This is necessary to ensure that the audit has been conducted in accordance with professional standards and to issue an appropriate audit opinion. Performing substantive tests of account balances and gaining an understanding of the client's internal control system are part of the planning and fieldwork phases of the audit, while confirming the terms of the audit engagement with the auditor is typically done at the beginning of the engagement.

The Final Phase of an Audit Includwhich of the Following