After fieldwork audit procedures are completed, a partner of the CPA firm who has not been involved in the audit performs a second or wrap-up review of the audit documentation. This second review usually focuses on:
a.The communication of internal control weaknesses to those charged with governance.
b.The fair presentation of the financial statements in conformity with GAAP.
c.The materiality of the adjusting entries proposed by the audit staff.
d.Fraud involving the client's management and its employees.
Answer:B
Choice "B" is correct. The primary purpose of a second partner review is to ensure that the financial statements are presented in accordance with GAAP.
Choice "d" is incorrect. A search for fraud is typically not part of a second partner review.
Choice "c" is incorrect. The materiality of adjusting entries proposed by the audit staff may be reviewed by a second partner, but they are not the primary focus of such a review.
Choice "a" is incorrect. The communication of internal control weaknesses to those charged with governance is not a primary focus of a second partner review.