The planning stage of an audit involvthe performance of detailed tests of controls and substantive testing of transactions and accounts.

Question

Quizplus · Accepted Answer

The planning stage of an audit involves obtaining an understanding of the entity and its internal control environment, identifying areas of potential risk, determining materiality thresholds, and designing an overall audit strategy. Detailed tests of controls and substantive testing are performed during the execution stage of the audit.

The Planning Stage of an Audit Involvthe Performance of Detailed