A2 - Assessing the Risks of Material misstatement

Question 1

The audit plan usually cannot be finalized until the:

Answer 1

Consideration of the entity’s internal control has been completed.

Question 2

The primary objective of procedures performed to obtain an understanding of the entity and its environment is to provide an auditor with

Answer 2

Knowledge necessary for risk assessment and audit planning.

Question 3

Analytical procedures used in planning an audit should focus on:

Answer 3

Enhancing the auditor’s understanding of the client’s business.

Question 4

Analytical procedures used in the planning phase of an audit should focus on:

Answer 4

Enhancing the auditor’s understanding of the transactions and events that have occurred since the last audit.