Latisha, a recent college graduate has just begun work with a large auditing firm and has been assigned a mentor; a much more experienced auditor with many years of experience. While they are sitting at lunch one day, Latisha notes that while the auditing firm is large and has many people with many different skillsets and talents working for it, she does not understand how they have the personnel to effectively audit their wide breadth of clients. In responding to this inquiry, her mentor's best response.

1) That if the audit team assigned to the audit of a particular client can refer back to their knowledge and experiences from prior audits of the same client, then a specialist is required to corroborate any conclusions drawn by the audit team .

2) The auditors often rely on the work of specialists to audit certain accounts and balances that they may not have the expertise to effectively audit. The auditor will typically control the appointment of the third party specialist.

3) That generally accepted auditing standards require that auditors retain the services of specialists for any accounts and/or balances thst they do not have the expertise to audit, and defer the appointment.

Answer rating: 100% (QA)

Out of the three options providedthe best response by Latishas mentor is 2 The auditors often rely o... View the full answer