ICAEW ARF · Chapter 2 · Question 5 of 8
Which of the following is a precondition for an audit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Management agrees that it is responsible for giving the auditor access to all relevant information and people
Explanation
The preconditions for an audit are the use of an acceptable financial reporting framework and management's agreement to its responsibilities, including providing access to information. The auditor confirms these before accepting the engagement. A history of errors or weak controls affects risk assessment but does not prevent an audit, and the risk assessment happens after acceptance.
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