Question

Auditing

15-1. The audit file completion deadline for a public client is . . .
a. 45 days after the report date.
b. 60 days after the report date.
c. 45 days after the report release date.
d. 60 days after the report release date.

15-2. Unless applicable state law specifies a longer period, audit documentation for a nonpublic client must
be retained for a minimum of . . .
a. 5 years from the report date.
b. 7 years from the report date.
c. 5 years from the report release date.
d. 7 years from the report release date.

15-3. Which of the following statements best describes the auditor’s final evaluation of the audit results with
respect to the report impact of misstatements detected during the audit?
a. The auditor should modify the opinion if the client does not agree to record all proposed audit
adjustments.
b. The auditor will expect the client to correct factual misstatements but not necessarily all proposed
audit adjustments.
c. The auditor must modify the opinion if the client is unwilling to record an audit adjustment for a
judgmental misstatement.
d. The auditor should conclude that a pervasive FRF departure exists if the client fails to correct
projected misstatement of any amount.

Answer 1

Part 1) Option D is answer

As per AU -C section 230 - Audit Documentation ----- The audit file completion deadline for a public client is 60 days after the report release date.

Part 2) Option D is answer

As per AU- C Section 230- Audit Documentation --- Audit documentation for non public client must be retained for a minimum of 7 years from report release date

Part 3)Option C is answer

The auditor must modify the opinion if the client is unwilling to record an audit adjustment for judgemental misstatement