Which One of the Following Is Not a Key Step

question 55

Multiple Choice

Which one of the following is not a key step in planning the audit?

• A) Perform analytical procedures.
• B) Consider audit risk.
• C) Make preliminary judgments about materiality levels.
• D) Develop preliminary audit strategies for significant assertions.
• E) Obtain an understanding of the client's external controls.

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Definitions:

Specialize

The process of focusing effort and resources on a particular area of expertise or production to increase efficiency and output.

Production Possibility Frontiers

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, illustrating the trade-offs and opportunity costs.

Opportunity Cost

Abandoning potential gains available from alternative choices when one is picked.

Bushel

A unit of volume that is used primarily in agriculture, specifically for measuring volumes of dry goods such as grains and fruits.