c)

One of the phases involves understanding an entitys internal control. Why might the members of the association be particularly interested in the work conducted by auditors in this phase of the audit?

b. Match the definition of each phase of the audit with the specific phase it relates to. Audit Phase Definition The auditor understands and evaluates the client's internal controls in order to assess the risk that they will not prevent or detect a material misstatement. In the case of a public company, the auditor will conduct an audit of internal control over financial reporting. Based on the collection and evaluation of evidence, the auditor issues a report on whether the financial statements are fairly presented. During this phase of the audit, the auditor uses the knowledge of the client to plan the audit and perform preliminary analytical procedures The auditor decides to accept a new client or retain an existing client The auditor searches for contingent liabilities and subsequent events, and performs a final review of the ovidence gathered. This phase involves (1) determining the audit engagement team requirements, (2) ensuring the independence of the audit team and audit firm, and (3) establishing an understanding with the client regarding the services to be performed and the other terms of the engagement. The auditor conducts substantive tests, including analytical procedures and the details of the account balances, searching for material misstatements. b. Match the definition of each phase of the audit with the specific phase it relates to. Audit Phase Definition The auditor understands and evaluates the client's internal controls in order to assess the risk that they will not prevent or detect a material misstatement. In the case of a public company, the auditor will conduct an audit of internal control over financial reporting. Based on the collection and evaluation of evidence, the auditor issues a report on whether the financial statements are fairly presented. During this phase of the audit, the auditor uses the knowledge of the client to plan the audit and perform preliminary analytical procedures The auditor decides to accept a new client or retain an existing client The auditor searches for contingent liabilities and subsequent events, and performs a final review of the ovidence gathered. This phase involves (1) determining the audit engagement team requirements, (2) ensuring the independence of the audit team and audit firm, and (3) establishing an understanding with the client regarding the services to be performed and the other terms of the engagement. The auditor conducts substantive tests, including analytical procedures and the details of the account balances, searching for material misstatements