One of the first procedures performed by auditors during on-location audit work is the
A) Development of the firm's audit strategy.
B) Preparation of the audit report.
C) Design of the audit plan.
D) Establishment of an understanding of the company's ICFR systems.

Question

Quizplus · Accepted Answer

The establishment of an understanding of the company's internal control over financial reporting (ICFR) systems is one of the first procedures performed by auditors during on-location audit work. This helps the auditor to identify areas of potential risk, determine the scope of the audit, and develop an appropriate audit plan. The other choices are not performed during this initial stage of the audit process.

One of the First Procedures Performed by Auditors During On-Location