What Must Happen Before Planning the Audit and Implementing the Phase

question 82

Multiple Choice

What must happen before planning the audit and implementing the phase of risk assessment?

• A)The client acceptance or continuation decision has to be made
• B)The risk response phase has to be completed
• C)The reporting phase must be undertaken
• D)The audit strategy must be planned

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Definitions:

Operating Budgets

Detailed plans that outline expected revenue and expenses over a certain period, focusing on the day-to-day operations of an organization.

Continuous Budgeting

A method of budgeting that provides for maintaining a 12-month projection into the future.

Budget Procedure

The process of creating a plan to allocate resources and predict income and expenditures over a specific period.

Accounting Department

A department within a company responsible for managing financial records, ensuring compliance with standards, and providing financial reporting and analysis.