Auditing 2 - 4.52 A. Yes, auditor should question the...

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4.52 A. Yes, auditor should question the persuasiveness of the evidence obtained from related parties because the evidence may be biased. The auditor should obtain the evidence of the purpose, nature,, and extent of effects on financial statements, and evidence should be beyond the inquiry of management. B. Yes, because he still has to verify that the values of the loans are stated correctly. He could use the statement but make sure it has been verified. 4.55 A. Before and audit begins the auditors needs to do research on the prospective client. They need to obtain and review financial information such as annual reports, Form 10-As and what is reported to regulatory agencies. They will need to inquire with bankers, attorneys, or any persons who do business with the entity for information about the entity and its management. They will need to communicate with past auditors, prospective client’s management. This applies to accounting principles, audit procedures, or similar matters.
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Auditing 2 - 4.52 A. Yes, auditor should question the...

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