In preparing for a repeat engagement, the first thing an audit team should do is:
A)Interview client management for any changes in the business and industry.
B)Take a tour of a client's physical facilities noting obvious inventory obsolescence or equipment maintenance issues.
C)Obtain a copy of the yearend financial statements for the current year.
D)Reviewing prior year working papers and permanent file documents.

Question

Quizplus · Accepted Answer

Reviewing prior year working papers and permanent file documents helps the audit team understand the client's business, past issues, and audit adjustments, providing a foundation for planning the current audit.

In Preparing for a Repeat Engagement, the First Thing an Audit