The main objective of audit planning is to ensure appropriate attention is given to all areas of the audit. Audit planning assists the auditor to:   Select one: a. Identify and resolve potential problems on a timely basis b. Devote appropriate attention to important areas of the audit c. Perform the audit effectively and efficiently d. All of the given answers are correct

Which of the following statements related to multiple-step Statement of Profit or Loss is not true? O The first section of the statement reports gross profit. O Subtotals for total selling expenses and general and administrative expenses are reported. O Non-operating items are reported separately from operations. O Shows only one total for expenses.

As an auditor, it is important to gain a comprehensive understanding of every aspect of a client’s internal control. This helps in evaluating control risk and preparing for the audit of the client’s financial statements. Choose one of the following questions to discuss: For what purposes should an auditor use their understanding of internal control components to plan an audit? What factors should an audit team consider when trying to reduce the planned assessed level of control risk below the maximum? What are the documentation requirements for a client’s internal control and assessed level of control risk?

Which of the following is ordinarily performed last in the audit examination?a. Securing a signed engagement letter from the client.b. Performing tests of controls.c. Performing a review for subsequent events.d. Obtaining signed written representations.

Salim is an auditor planning with engagement team members how to obtain an audit evidence. In this regard, which of the following situations is required the application of ISA 500? O a. The audit evidence obtained in relation to a particular topic O b. All the audit evidence obtained during the course of an audit O c. Specific procedures to obtain an audit evidence O d. At the time of planning an audit

distinguish efficiency and effectiveness in operation audit performed by an internal auditor

Analytical procedures are a critical part of audit work. Describe at least three different analytical procedures and explain how to perform each. Specify what the results will reveal about the client.

Audit planning is conducted at the beginning of the audit process to establish the overall audit strategy and detail the specific procedures to be carried out to implement the strategy and complete the audit. Briefly explain the steps in audit planning.