Question

What are the components or objectives associated with demonstrating compliance in an audit?

a. Demonstrate how the audit complied with auditing and related professional practice standards
b. Support the basis for the auditor's conclusions concerning each material financial statement assertion
c. Demonstrate that the underlying accounting records agreed or reconciled with the financial statements
d. Include a written audit program detailing auditing procedures necessary to accomplish audit objectives

Answer 1

The components of demonstrating compliance in an audit include complying with auditing standards, supporting auditor's conclusions, and verifying accounting records.

Step-by-step explanation:

The components or objectives associated with demonstrating compliance in an audit are:

1. Demonstrate how the audit complied with auditing and related professional practice standards: This objective ensures that the audit process followed the established standards and guidelines.
2. Support the basis for the auditor's conclusions concerning each material financial statement assertion: This objective involves providing evidence and documentation to support the conclusions made by the auditor regarding the financial statements.
3. Demonstrate that the underlying accounting records agreed or reconciled with the financial statements: This objective verifies that the accounting records are accurate and consistent with the financial statements.

These components help to ensure that the audit is conducted in a thorough and compliant manner, providing assurance to stakeholders.