ACCA AA · Chapter 5 · Question 2 of 9
Under ISA 210, which of the following is a precondition for an audit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Management acknowledges its responsibility for preparing the financial statements, for internal control and for giving the auditor access to information
Explanation
The preconditions for an audit are that the financial reporting framework is acceptable and that management agrees to its responsibilities, including providing the auditor with access to all relevant information and to people. Liquidity, the existence of internal audit and fee approval are not preconditions.
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