Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Jane and Sandra, two audit staff associates, have been assigned to the audit of QuickSilver, Inc., a distributor of sand and building materials throughout the

Jane and Sandra, two audit staff associates, have been assigned to the audit of QuickSilver, Inc., a distributor of sand and building materials throughout the southeastern United States. One morning, they are reviewing the current year's audit file and notice that some documents appear to be missing. They are unable to locate a copy of the engagement letter or the minutes of last year's board of directors meeting, which the partner has requested for review. Which of the following represents Jane and Sandra's most appropriate response to this?

1) per generally accepted auditing standards, and as part of any external audit, missing documents must be reported to both the client's management and the PCAOB within seven business days.

2)to contact senior management of the client and request copies of these documents, to add back into the audit file and furnish to the partner requesting them.

3) to advise the partner requesting the documents that the minutes of the board of directors meetings should be located in the permanent file, and that they will institute a search for the missing engagement letter.

4) to contact the audit partner requesting the documents and explain that they are missing and that he or she should consult the permanent file as they must be in there.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Financial and Managerial Accounting

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

5th edition

978-0133866292

Students also viewed these Accounting questions