Audit means an independent examination of the books of accounts or financial statements of a company. Audit includes many things like audit plan, audit program, audit documentation, etc. The last phase of the audit is to make an opinion over the financial statement of the company. To choose : The procedure which is not followed in phase V of audit. b. Performance of preliminary analytical review procedures. Correct answers: b. The performance of preliminary analytical review procedures has happened in phase I of audit because it includes taking knowledge of the company’s work. Incorrect answer : a. Assessment of misstatement detected during the course of audit is happen in phase V of the audit. All substantive procedures and test control are done in phase V. c. Performance of an engagement quality review is happening in the last phase of the audit in which auditors perform a quality review. So it is also included in Phase V. d. Determination of the appropriate audit opinion is also in the last phase of the audit i.e. phase V of the audit.

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Chapter 5, Problem 47CYBK

To determine

Concept Introduction:

Audit means an independent examination of the books of accounts or financial statements of a company. Audit includes many things like audit plan, audit program, audit documentation, etc. The last phase of the audit is to make an opinion over the financial statement of the company.

To choose: The procedure which is not followed in phase V of audit.

b. Performance of preliminary analytical review procedures.

Correct answers:

b. The performance of preliminary analytical review procedures has happened in phase I of audit because it includes taking knowledge of the company’s work.

Incorrect answer:

a. Assessment of misstatement detected during the course of audit is happen in phase V of the audit. All substantive procedures and test control are done in phase V.

c. Performance of an engagement quality review is happening in the last phase of the audit in which auditors perform a quality review. So it is also included in Phase V.

d. Determination of the appropriate audit opinion is also in the last phase of the audit i.e. phase V of the audit.

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