What Is the First Step to Developing Audit Objectives

question 24

Multiple Choice

What is the first step to developing audit objectives?

• A) Know management assertions about accounts
• B) Divide the financial statements into cycles
• C) Understand objectives and responsibilities for the audit
• D) Know general audit objectives for classes of transactions and accounts

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Definitions:

Sacropterygian Fishes

An ancient group of lobe-finned fishes, some of whose descendants evolved into terrestrial vertebrates.

Ancestral

Relating to or inherited from an ancestor or ancestors.

Amphibians

Amphibians are a class of cold-blooded vertebrates that include frogs, toads, salamanders, and newts, characterized by their ability to live both on land and in water.

Chordate Group

A large group of animals that, at some stage in their development, possess a notochord, dorsal nerve cord, pharyngeal slits, and a post-anal tail.