- 1 Marks
AAA – Nov 2013 – L3 – A – Q16 – Group Audits
This question assesses the appropriate audit procedure for verifying a subsidiary’s accounts before consolidation.
Question
When a client has control over a subsidiary, what is the most appropriate audit procedure to obtain evidence to verify subsidiary accounts before consolidation?
A. Arrange for independent valuation of the assets and liabilities of the subsidiary
B. Be involved in the appointment of the subsidiary auditors
C. Rely on additional work carried out by the internal auditors
D. Send a template of your expectation to subsidiary auditors
E. Provide audit program for the subsidiary auditors
Find Related Questions by Tags, levels, etc.
- Tags: Audit Procedure, Consolidation, Group Audits, Subsidiary Accounts
- Level: Level 3
- Topic: Group audit
- Series: NOV 2012
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