By the time the interim work has been completed the auditor should have a good understanding of the client and problems that management is likely to encounter preparing the financial statements. What should the auditor do if, as they prepare for the final work, they discover a significant unanticipated problem area?
A) Amend the audit plan and advise management about impacts on disclosure and accounting.
B) Follow the audit plan that has been agreed and include an appropriate qualification in the audit report.
C) Resign as auditor as the risk is too great that other problems will arise.
D) Notify the appropriate regulator that there is a problem with the financial statements.
Correct Answer:
Verified
Q2: Which of the following activities should form
Q3: What is the purpose of bridging work?
A)
Q4: Complete the definition of analytical procedures using
Q5: Which statement completes paragraph 6 of ISA
Q6: If the preparers of the financial statements
Q7: If the auditor is using only analytical
Q8: An auditor doing analytical analysis calculates the
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