Mastering Audit Planning

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Which of the following best describes audit planning?

A process of deciding in advance what is to be done, who is to do it, how it is to be done and when it is to be done by the auditor (correct)

A process of reviewing the financial statements of a client

A process of conducting interviews with key personnel of a client

A process of identifying potential fraud risks in a client's business

What knowledge does the auditor need to have in order to do audit planning?

Knowledge of the business of the client (correct)

Knowledge of audit regulations

Knowledge of the auditor's own firm

Knowledge of the latest accounting software

Why is it important for audit plans to be flexible?

To make the audit process more complicated

To allow for more time to complete the audit

So that they can be developed or revised as and when required by the auditor (correct)

To ensure that the auditor has control over the client's business operations

What should audit plans cover?

Knowledge about client’s accounting systems and policies, internal control procedures and coordinating the work to be performed Signup and view all the answers

How does audit planning enhance the quality of audit work?

By ensuring that the auditor covers different aspects of audit work in a systematic manner within a pre set time frame Signup and view all the answers

What is audit planning?

Audit planning is a process of deciding in advance what is to be done, who is to do it, how it is to be done and when it is to be done by the auditor in order to have efficient and effective completion of work. Signup and view all the answers

When can audit planning be done?

Audit planning can be done only when the auditor is having knowledge of the business of the client. Signup and view all the answers

What does audit planning help in accomplishing?

Audit planning helps in the accomplishment of objectives of the audit and enables the auditor to cover different aspects of audit work in a systematic manner within a pre-set time frame. Signup and view all the answers

What should audit plans cover?

Audit plans should cover knowledge about client’s accounting systems and policies, internal control procedures, and coordinating the work to be performed. Signup and view all the answers