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CMA Intermediate · Corporate Accounting and Auditing · Audit Engagement, Audit Program, Audit Documentation and Audit Evidence

Which of the following is NOT among the matters that SA 210 lists as management's acknowledged responsibilities in establishing the preconditions for an audit?

Designing audit procedures and deciding sample sizes is not a management responsibility under SA 210 preconditions. Management acknowledges responsibility for preparing the financial statements, for necessary internal control, and for giving the auditor information and unrestricted access to people; procedure design belongs to the auditor.

  1. APreparing the financial statements in accordance with the applicable financial reporting framework
  2. BMaintaining such internal control as management determines necessary for statements free from material misstatement
  3. CProviding unrestricted access to persons within the entity from whom the auditor needs evidence
  4. DDesigning the audit procedures and deciding the sample sizes to be testedCorrect

Explanation

Under the preconditions, management acknowledges responsibility for preparing the statements, for necessary internal control, and for giving the auditor access to information, additional information requested, and unrestricted access to persons. Designing audit procedures and sample sizes is the auditor's responsibility, so it is not a management precondition.

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