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Questions and Answers
Conducting preliminary arrangements with the client is not necessary to start the audit planning process.
Conducting preliminary arrangements with the client is not necessary to start the audit planning process.
False
The auditor only needs to review and understand the organization's policies and procedures during the audit planning process.
The auditor only needs to review and understand the organization's policies and procedures during the audit planning process.
False
The maximum control risk means that there is no chance of a material misstatement being prevented or detected by the entity's internal control structure.
The maximum control risk means that there is no chance of a material misstatement being prevented or detected by the entity's internal control structure.
False
During the audit planning process, the auditor reviews and understands the organization's policies, procedures, and structure to assess control risk.
During the audit planning process, the auditor reviews and understands the organization's policies, procedures, and structure to assess control risk.
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The engagement letter must include all preliminary arrangements made with the client.
The engagement letter must include all preliminary arrangements made with the client.
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After reviewing general controls and application controls, the auditor may decide to assess control risk at a level below maximum for some assertions.
After reviewing general controls and application controls, the auditor may decide to assess control risk at a level below maximum for some assertions.
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