Which of the following would be an example of due care?
A)Audit documentation all supplied by the client.
B)Audit documentation is a copy of last year's work papers.
C)Audit documentation with reviews by senior, manager, and partner.
D)Audit documentation with misapplication of GAAP.

Question

Quizplus · Accepted Answer

Due care requires auditors to exercise professional skepticism and judgment while planning and performing an audit. Review by senior, manager, and partner ensures that auditors have followed auditing standards and that the audit work has been planned and executed appropriately. Choice A and B do not represent due care since auditors need to exercise professional skepticism while evaluating the client's data, and copying from previous years' documentation does not guarantee that the audit work was performed correctly. Choice D represents a lack of due care, as auditors are expected to apply GAAP appropriately.

Which of the Following Would Be an Example of Due