Which of the following would be an example of due care?
A) Audit documentation only supplied by the client.
B) Audit documentation is a copy of last year's workpapers.
C) Audit documentation obtained by the auditor with reviews by supervisory personnel.
D) Audit documentation with misapplication of GAAP.

Question

Quizplus · Accepted Answer

Due care involves obtaining sufficient and appropriate audit evidence. Choice C indicates that the auditor obtained documentation and had it reviewed by supervisory personnel, indicating a level of care in the audit process. Choices A, B, and D do not demonstrate due care. Choice A indicates reliance solely on client-provided documentation, which may not be sufficient or reliable. Choice B indicates the use of outdated documentation, which may not be relevant or complete. Choice D suggests errors in the application of GAAP, indicating a lack of due care in performing the audit.

Which of the Following Would Be an Example of Due