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Jennifer Daoust is reading the documents prepared by the members of the team working on the audit of receivables for a large client. Jennifer is
Jennifer Daoust is reading the documents prepared by the members of the team working on the audit of receivables for a large client. Jennifer is the senior manager assisting the engagement partner, Ruby Rogers. Jennifer and Ruby have worked together on many audits and Jennifer knows the types of questions that Ruby will ask about the working papers if they are not up to the standard required by CAS 230. Jennifer is trying to make sure that all documents are up to the required standard before Ruby sees them tomorrow. Jennifer is particularly concerned about the documents relating to the receivable confirmations. This is because the audit assistant who wrote up the confirmation results said that no further work was required. On review of the results. Jennifer discovered that the audit assistant had incorrectly treated "no reply" results as acceptable for a positive confirmation, when they are acceptable only for a negative confirmation. Jennifer had ordered further work be done to follow up these 'no reply' results. Which of the following are true? Because confirmations were sent, no further work is needed. Jennifer must ensure the audit documentation provides sufficient appropriate evidence to support the auditor's report. The confirmations provide strong evidence for the valuation assertion for accounts receivable. The audit documentation should show who performed the audit work and the date the work was done, as well as who reviewed the audit work performed and the date and extent of such review. Documentation should be detailed enough so that another experienced auditor can understand the work done and the results obtained. It would have been better if negative confirmations had been sent, because then a response is always requested. Jennifer's review should show that the decision to take no further action is not appropriate. (a) Your answer is incorrect. When would a component auditor likely be engaged by the groupengagentent partner? (Several choices may be correct.) It is more costly for the group engagement partner to perform the work Client operates in one geographical region Client owns a material subsidiary in other country Client operates in a number of loxations Group engagement partner dlees not have the expertise required to perform the work
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