Multiple choice

Directions: Choose the correct option for the given question.

Consider the following stages: An auditor has to undergo before commencing an audit

  1. Ascertaining the scope of audit work.
  2. Gaining knowledge about business of the client.
  3. Going through the agreement with the client.
  4. Instructions to and information from the client. What is the correct sequence of the above stages?

  1. 2 - 1 - 3 - 4

  2. 3 - 4 - 2 - 1

  3. 2 - 4 - 3 - 1

  4. 3 - 1 - 2 - 4
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The correct sequence begins with the client agreement (3) - establishing the engagement terms. Next is ascertaining the audit scope (1) based on the agreement. Then the auditor gains knowledge about the client's business (2) to understand risks and operations. Finally, instructions and information are obtained from the client (4) to facilitate the audit execution. This logical flow moves from contractual commitment to detailed execution.

Keep practicing — related questions