When selecting staff for the audit engagement,
A) only staff members who are CPAs should be assigned to the audit.
B) only managers and above need to have appropriate competence and capabilities to perform the audit.
C) continuity of staff members from year to year should not be a factor.
D) staff assigned to the audit must be knowledgeable about the client's industry.

Question

Quizplus · Accepted Answer

It is important for staff assigned to the audit to have knowledge about the client's industry. This will help them understand the business operations, risks, and accounting methods particular to that industry. While having a CPA license is valuable, it is not the only factor in selecting staff for the audit. Competence and capabilities should be considered for all staff, not just managers and above. Continuity of staff members can also be helpful for efficiency and consistency, but it is not a crucial factor in selecting staff for the audit.

When Selecting Staff for the Audit Engagement