In Figure 2-4, six phases or steps of an audit are identified in a time matrix.

Required:

a. Indicate in tabular form the time dimensions of each step assuming a company has a fiscal year that ends on (1) February 28 and (2) September 30.

b. Is it permissible under GAAS to accept an engagement after the fiscal year has ended?

c. What advantages are derived from early appointment of the auditor?

d. How much of the audit can be performed at interim dates?

Figure 2-4

Transcribed Image Text:

To the Board of Directors of Illustrative Company: We consent to the reference to our firm under the caption "Statement of Earnings" and "Experts" and to the use of our reports dated in the Registration Statement (Form S-1) and related Prospectus of the Illustrative Company in the registration of 1,000,000 shares of its common stock CPA's Signature