Auditing Essay

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Chapter 5 AUDIT PLANNING 1. This involves developing an overall strategy for the expected conduct and scope of the examination; the nature, extent, and timing of which vary with the size and complexity, and experience with and knowledge of the entity A. Audit planning B. Audit procedures C. Audit program D. Audit working papers 2. Audit plan should | A. | B. | C. | D. | Precede actions | NO | YES | YES | NO | Be flexible | YES | NO | YES | YES | Be cost beneficial | YES | YES | YES | NO | 3. Adequate planning of the audit work helps ensure that | Adequate attention is devoted to important areas | All misstatement will be detected | Potential problem are indentified | The work is completed expeditiously | A. | YES | YES | YES | YES | B. | NO | YES | NO | YES | C. | YES | NO | YES | YES | D. | YES | NO | YES | NO | 4. Initial audit planning involves four matters. Which of the following is not one of these? A. Develope an overall audit strategy. B. Request that bank balances be confirmed. C. Schedule engagement staff and audit specialists. D. Identify the client’s reasons for the audit. 5. Which of the following procedures would a CPA ordinarily perform during audit planning? A. Obtain understanding of the client’s business and industry B. Review thw client’s bank reconcilation C. Obtain client’s representation letter D. Review and evaluate client’s internal control 6. Early appointment of the independent auditor will enable: A. A more thorough examination to be performed. B. A proper study and evaluation of internal control to be performed. C. Sufficient competent evidential matter to be obtained. D. A more efficient examination to be planned. 7. In developing the overall audit plan for a new client, factor not to be considered is A. Materiality levels.

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