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Regulatory Environments for Compensation Programs

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According to the Standards, which of the following best describes why initial audit test results should be reported to the auditor-in-charge prior to advising management?
A. It ensures that an appropriate chain of evidence is maintained through the workpapers.
B. It increases the likelihood of obtaining the audit client's agreement with the results.
C. It is required to demonstrate that effective engagement supervision has occurred.
D. It helps ensure that appropriate professional judgments and conclusions are made.
Answer: D

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