In the Preparation of an Audit Plan, Which of the Following

question 40

Multiple Choice

In the preparation of an audit plan, which of the following items is not essential?

• A)A review of material from prior audits.
• B)The preparation of a budget identifying the costs of resources needed.
• C)An understanding of controls established by management.
• D)Assessment of inherent risk.

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Definitions:

Organic Explosives

Explosive materials composed of organic chemicals that produce a detonation or rapid expansion of gases to generate destructive effects.

Combustion

A chemical reaction that occurs when a substance reacts with oxygen to give off heat and light, often producing flame.

Explosives

A rephrased definition: Chemical compounds or mixtures that release a large amount of energy in a very short time through blasts or combustion.

Carbon Dioxide

A colorless, odorless gas with the formula CO2, produced by burning carbon and organic compounds and by respiration.