Question #: 101 Category: 1E1 Consider Using the Work of Other Independent Audit

  • Creator
    Topic
  • February 27, 2017 at 4:06 pm #1499896
    benboccio
    Participant

    Which of the following procedures would the principal auditor most likely perform after deciding to make reference to another CPA who audited a subsidiary of the entity?

    A.
    Review the working papers and the audit programs of the other CPA.

    B.
    Visit the other CPA and discuss the results of the other CPA’s audit procedures.

    C.
    Make inquiries about the professional reputation and independence of the other CPA.

    D.
    Determine that the other CPA has a sufficient understanding of the subsidiary’s internal control.

    The answer is C, but honestly I would make the inquiries BEFORE deciding not AFTER.

    AUD - 90
    BEC - 83
    FAR - 87
    REG - 87
    NINJA 4EVER
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