Which of These Steps in Planning the Audit Is Out

question 47

Multiple Choice

Which of these steps in planning the audit is out of sequence?

• A) obtaining an understanding of the entity's internal control structure.
• B) obtaining an understanding of the entity and its environment.
• C) making preliminary judgements about materiality levels.
• D) considering the audit risk

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Definitions:

Frames of Reference

The experiences, ideas, values, and information that an individual uses to interpret and understand messages.

Miscommunication

A failure to communicate effectively, leading to misunderstandings or confusion.

Organizational Culture

The values, behaviors, and beliefs that contribute to the unique social and psychological environment of a business or organization.

Oral Communication

The exchange of information or ideas through spoken words.