The audit partners and senior audit managers of Frame Auditing Co . are meeting to discuss a
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Question:
The audit partners and senior audit managers of Frame Auditing Co are meeting to discuss a client they have recently accepted, Murky Inc. Murky Inc. is a distributor of sheet metal throughout the continental United States, and the auditors have determined from an initial client meeting that inherent risk is likely to be higher in this audit. The meeting has been convened to discuss the types of audit procedures to be conducted in order to ensure an appropriate opinion is issued on the financial statements. Which of the following statements would represent prudent recommendations pertaining to audit procedures for this client? Several choices may be correct. Frame Auditing Company is likely to defer areas of higher risk to Murky Inc's internal audit function and adopt a reliance strategy. Frame Auditing Company may choose to invest significant resources upfront in inquiry procedures in order to fully understand where the areas of higher inherent risk may be To verify and audit quantitative documents such as invoices and spreadsheets, Frame Auditing Co will likely perform a reperformance procedure to check for quantitative accuracy in documents and records. As the client is viewed by the auditor as representing higher inherent risk, Frame Auditing Co is likely to send positive confirmations if employing a confirmation procedure
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