Accounting · Audit Evidence
Which of the following is the most appropriate initial action an auditor should take following a client's refusal to allow them to seek a direct bank confirmation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Accept management's explanation without any documentation or modification of the audit report
- 2Send the bank confirmation request without management's authorization since the bank communicates directly with the auditor
- 3Immediately withdraw from the audit engagement without performing any further procedures
- 4Re-evaluate the risk of material misstatement, including fraud risk, and revise the audit plan to consider alternative procedures✓
Correct answer
Re-evaluate the risk of material misstatement, including fraud risk, and revise the audit plan to consider alternative procedures
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