During the first phase of an audit,a CPA most likely would
A) Identify specific internal control activities that are likely to prevent fraud.
B) Evaluate the reasonableness of the client's accounting estimates.
C) Evaluate the integrity of management.
D) Inquire of the client's attorney as to whether any unrecorded claims are probable or asserted.

Question

Quizplus · Accepted Answer

During the first phase of an audit, which is the planning phase, a CPA would evaluate the integrity of management. This helps the CPA determine the extent of testing needed and also identify any potential risks of material misstatement due to fraud. Options A, B, and D are more likely to be performed during the second phase of an audit, which is the fieldwork phase.

During the First Phase of an Audit,a CPA Most Likely