Bigland and Betton,PAs,is being sued by a bank for potential negligence during an audit engagement that was completed over five years ago.Which of the following actions during that audit engagement will help ensure that the suit is fairly assessed?

Question

Quizplus · Accepted Answer

Good quality documentation is crucial in proving that audit procedures were properly performed and conclusions were appropriately drawn. This documentation will help demonstrate to the court that the auditors acted in accordance with audit standards and exercised due care during the audit engagement. Honest management at the client, low employee turnover, and good employee memory of events may also be helpful, but they are not as critical as having good quality documentation.

Bigland and Betton,PAs,is Being Sued by a Bank for Potential