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 report to an acceptably low level.

Question

Quizplus · Accepted Answer

The final phase of the audit involves the auditor determining whether the audit evidence obtained is sufficient and appropriate to reduce the risk of material misstatements in the financial report to an acceptably low level. Option A pertains to the substantive tests that are carried out earlier in the audit process. Option B is related to gaining an understanding of the client's internal control system, which is typically done at the planning stage. Option C refers to confirming the terms of the audit engagement, which is typically done at the beginning of the audit process. Hence, the correct answer is D.

The Final Phase of an Audit Includes Which of the Following