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:

Circular Reference

A situation in which a formula or calculation in a system refers back to itself directly or indirectly, potentially causing errors or infinite loops.

Reference

An indication to a source of information or data, often used in research, writing, or programming to point to external details or evidence.

Typing

The action or process of writing by pressing keys on a keyboard.

Number Format

A setting that determines how numbers are displayed, such as decimal places, currency symbols, or percentages.