Question

An auditor should examine minutes of the board of directors' meetings:

A) through the date of the financial statements.
B) through the date of the audit report.
C) only at the beginning of the audit.
D) on a test basis.

Answer 1

The auditor should examine the minutes of the board of directors' meetings through the date of the financial statements to ensure accuracy. This can be done on a test basis to obtain reasonable assurance.

Step-by-step explanation:

The auditor should examine the minutes of the board of directors' meetings through the date of the financial statements. This allows the auditor to gather information about any significant decisions or events that took place before the financial statements were prepared. By reviewing the minutes, the auditor can ensure that the financial statements accurately reflect the actions of the board of directors and any related party transactions.

Examining the minutes of the board of directors meetings on a test basis means that the auditor selects a sample of meetings to review rather than examining every single meeting. This approach allows the auditor to obtain reasonable assurance that the minutes are accurate without having to review every single meeting in detail.