The Preliminary Audit Strategy for Each Assertion

question 23

Multiple Choice

The preliminary audit strategy for each assertion:

• A) is a detailed specification of auditing procedures.
• B) must be set before risk assessment is completed.
• C) represents a tentative audit approach.
• D) will be uniform throughout the audit.
• E) represents a committed audit approach.

Comprehend the role of objectives in the planning process.

Understand the connection between planning and control in the management process.

Identify the benefits of effective planning.

Recognize the difference between strategic, tactical, and operational planning.

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Definitions:

Bank Error

A mistake made by a bank in accounting transactions, deposits, withdrawals, or charges.

NSF Check

A non-sufficient funds (NSF) check is a check that cannot be processed because the account from which the funds are drawn does not have enough funds.

Adjusted Cash Balance

The cash balance reflected in the books after adjustments have been made for checks issued, deposits in transit, and other discrepancies.

Check Register

A record maintained by an account holder to keep track of checks written, deposits made, and current account balances.