Planning and Risk Assessment

Question 1

What would be a least useful source of information when an auditor is trying to obtain a general understanding of audit problems possibly encountered?

Answer 1

THE results of performing substantive procedures

Question 2

What would be considered a procedure an auditor would include in the planning of an audit of financial statements?

Answer 2

Determining the need for specialized skills

Question 3

What action should the auditor take when their assessment of risk is judgmental and may not be sufficiently precise to identify all risks of material misstatement?

Answer 3

Perform substantive procedures for all relevant assertions related to each material class of transactions

Question 4

What is a primary reason an auditor obtains an understanding of a new client?

Answer 4

To identify area(s) of Audit Emphasis

Question 5

What is an aspect of scheduling and controlling the audit engagement?

Answer 5

Including in the audit plan a column for estimated and actual time

Question 6

What is a like procedure a CPA would conduct during the initial planning phase of an audit?

Answer 6

Discuss the timing of the audit procedures with the client’s management