Tour of the client's production facilities is not an acceptable method for an auditor in understanding the client's business processes.

Question

Quizplus · Accepted Answer

A tour of the client's production facilities can provide valuable insight into the client's business processes and operations, which can help an auditor better understand the nature and extent of the risks facing the client's financial statements. Through a site visit, an auditor can observe the client's personnel, facilities, and equipment, as well as gain an understanding of the client's manufacturing processes, quality control procedures, and inventory management practices. Therefore, a tour of the client's production facilities is an acceptable method for an auditor in understanding the client's business processes.

Tour of the Client's Production Facilities Is Not an Acceptable