Question

There are three reasons why an experienced member of the audit firm must thoroughly review audit documentation of the completion of the audit, including

A) to evaluate the performance of inexperienced personnel.
B) to make sure that the audit meets the CPA firm's standard of performance.
C) to counteract the bias that often enters into the auditor's judgment.
D) all of the above.

Answer 1

An experienced member of the audit firm must thoroughly review audit documentation of the completion of the audit for three reasons: to evaluate the performance of inexperienced personnel, to make sure that the audit meets the CPA firm's standard of performance, and to counteract the bias that often enters into the auditor's judgment.

Step-by-step explanation:

An experienced member of the audit firm must thoroughly review audit documentation of the completion of the audit for the following three reasons:

1. To evaluate the performance of inexperienced personnel: Thoroughly reviewing the audit documentation allows the experienced member to identify any mistakes or areas where inexperienced personnel may have made errors. This ensures that the audit is accurate and reliable.
2. To make sure that the audit meets the CPA firm's standard of performance: By reviewing the documentation, the experienced member can ensure that all necessary procedures and standards have been followed during the audit process, and that the audit meets the professional standards set by the CPA firm.
3. To counteract the bias that often enters into the auditor's judgment: Thoroughly reviewing the audit documentation helps to minimize any unconscious bias that may have influenced the auditor's judgment. By carefully examining the evidence and documentation, the experienced member can ensure that the auditor's conclusion is based on objective and reliable information.