How do quality control processes for the financial statement audit process incorporate consideration of legislation that affects the client?
A)they require second partner review of all working papers that relate to legislative matters
B)they provide auditors with copies of legislation that affects their client
C)they require the training of all auditors in legislation details that could affect all clients
D)they include in audit checklists questions that address relevant new legislation

Question

Quizplus · Accepted Answer

Quality control processes for the financial statement audit process typically include audit checklists to ensure all relevant areas are covered. To incorporate consideration of legislation that affects the client, the checklists should include questions specific to the relevant new legislation to ensure the auditors are taking these factors into account during their audit procedures. Providing auditors with copies of legislation or requiring second partner review of all working papers related to legislative matters are not common quality control procedures in addressing legislation. Training all auditors in legislation details that could affect all clients may be beneficial, but it is not a requirement for ensuring compliance with legislation affecting a specific client.

How Do Quality Control Processes for the Financial Statement Audit