Which of the following is not an advantage of the preparation of working paper?

Correct answer: D. To provide a guide for advising another client on similar issues

  • A. To provide a basis for review of audit work
  • B. To provide a basis for subsequent audits
  • C. To ensure audit work is being carried out as per programme
  • D. To provide a guide for advising another client on similar issues

Explanation

Working papers support review, future audits and checking whether planned procedures were performed. They are not prepared primarily as a guide for advising an unrelated client, making that option the exception.

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Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.

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