Which of the following audit procedures is most likely to be performed during the planning phase of the audit?
A)Obtain an understanding of the client's risk assessment process
B)Identify specific internal control activities that are designed to prevent fraud
C)Evaluate the reasonableness of the client's accounting estimates
D)Test the timely cutoff of cash payments and collections

Question

Which of the following audit procedures is most likely to be performed during the planning phase of the audit?
A)Obtain an understanding of the client's risk assessment process
B)Identify specific internal control activities that are designed to prevent fraud
C)Evaluate the reasonableness of the client's accounting estimates 
D)Test the timely cutoff of cash payments and collections

Quizplus · Accepted Answer

During the planning phase, one of the primary objectives of the auditor is to obtain an understanding of the client's business and the risks associated with it. This includes obtaining an understanding of the client's risk assessment process. This understanding helps the auditor to plan and design audit procedures that are appropriate in the circumstances. Options B, C, and D are all substantive testing procedures, which are typically performed during the audit fieldwork phase, rather than the planning phase.

Which of the Following Audit Procedures Is Most Likely to Be