The scope of an audit team's work will be more extensive
A) for a first year audit engagement as opposed to a continuing audit.
B) when internal auditors perform work to be used as evidence by the external auditors.
C) when a user company's auditor relies upon a report provided by an auditor of the service provider.
D) for a company with effective entity-level controls.

Question

Quizplus · Accepted Answer

For a first year audit engagement, the audit team will need to perform more extensive work to gain an understanding of the company's operations and internal controls. In a continuing audit, the audit team can rely on the knowledge gained in previous years and typically has less work to do in terms of understanding the company's overall operations.

The Scope of an Audit Team's Work Will Be More