Which one of the following may auditors NOT perform for their client?
Correct answer: A. Taking management decisions
- A. Taking management decisions
- B. Preparation of accounting records
- C. Preparing tax computations
- D. Advising on weaknesses in the internal control systems
Explanation
Auditors may provide accounting, tax and internal-control services within applicable safeguards, but management decisions must remain with the client because accepting them creates a self-review and management responsibility threat.
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About Auditing
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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