Auditing Chapter 8 Mini Assessment

Which is not a reason for auditors to properly plan an engagement?

• Enable the auditor to obtain sufficient appropriate evidence for the circumstances

• Ensure that the auditors receive bragging rights for their performs

• Help keep audit costs reasonable

• Avoid misunderstanding with the client

Which of the following should be done early in the initial audit planning?

• Spread misinformation about the client to other auditor's to ensure your firm gets the business

• Determine ways to refuse your service in a way that is not offensive to the client

• Develop the overall strategy for the audit

• Contact a CPA Firm to conduct a peer review

Select all the Strategic Approaches to understanding the client's Business and Industry

• Industry and external environment

• Client objectives and strategies

• Systems maintenance and control

• Business operations and processes

Preliminary analytical tests can...

• Frustrate the clients into changing their minds about the audit

• Reveal unusual changes in ratios compared to prior years, or to industry averages

• Uncover the uncertainty inherent in applying sampling procedures.

• Bring disagreements with management as to auditing procedures.

What is the name given to the document which outlines the terms of interactions and arrangements between the client and the CPA firm?

• Arrangement Letter

• Terms of Engagement Document

• Interaction Letter

• Engagement Letter