Significant developments within the client that affect audit strategy include:
A) A change in ownership and/or capital structure has occurred.
B) Acquisitions or discontinued operations have recently occurred.
C) The accounting information systems have been modified.
D) All of the above

Question

Quizplus · Accepted Answer

All of the above options could significantly affect the audit strategy. A change in ownership or capital structure could affect the risk assessment and evaluation of internal controls. Acquisitions or discontinued operations would affect the determination of materiality and the allocation of resources to different areas of the audit. Modifications to accounting information systems could impact the reliability and accuracy of financial information, leading to changes in testing procedures.

Significant Developments Within the Client That Affect Audit Strategy Include