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Auditors document the terms of engagement in:
An engagement letter outlines the terms of the engagement including management's expected responsibilities and the responsibilities of the auditor.
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A properly developed engagement letter should include:
A properly constructed engagement letter should discuss the responsibilities of the auditors, management as well as the risks and limitations of the audit engagement.
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Preplanning audit documentation includes
A preplanning audit document will discuss the overall audit strategy. Planning an audit will include an internal control assessment, but not in the preplanning stage. Confirmation letters and substantive testing are part of the audit process.
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An audit supervisor reviewed the work performed by the staff to determine if the audit was adequately performed. The supervisor accomplished this by primarily reviewing which of the following?
Audit documentation, or working papers, comprises the principal record of audit procedures performed, evidence obtained, and conclusions reached. Reviewing the working papers allows a supervisor to understand the work performed and the evidence obtained, and to evaluate whether the audit was adequately performed.
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At the completion of an audit, which of the following entities has ownership of the audit working papers?
The CPA firm that performed the audit has ownership of the audit working papers. These work papers provide support for the audit opinion and contain information detailing the audit work performed.
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A ______ is specifically someone who performs work on an engagement of a component's financial information that will be used as audit evidence of a group audit.
A component auditor rightfully conducts audit procedures of a component of a larger group audit.
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