To obtain an understanding of a continuing client's business, and auditor most likely would a. Perform tests of details of transactions and balances.
b. Review prior year working papers and the permanent file for the client.c. Read current issues of specialized industry journals.d. Reevaluate the client's internal control environment.Review prior year working papers and the permanent file for the clientAn auditor obtains knowledge about a new client's business and its industry to Which of the following procedures would an auditor least likely perform whileobtaining an understanding of a client in a financial statement audit? Selecting a sample of vendor's invoices for comparison to receiving reportsOrdinarily, the predecessor auditor permits the successor auditor to review the predecessor's working paper analyses relating to In auditing the financial statements of Star Corp, Land discovered information leading Land to believe that Star's prior year's financial statements, which were audited by Tell, require substantial revisions. Under these circumstances, Land should a. Notify Star's audit committee and stockholders that the prior year's financial statements cannot be relied on.b. Request Star to reissue the prior year's financial statements with the appropriate revisions.c. Notify Tell about the information and make inquiries about the integrity of Star's management.d. Request Star to arrange a meeting among the three parties to resolve the matter
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- Spring '13