Which of the Following Is an Important Consideration During the Planning

question 29

Multiple Choice

Which of the following is an important consideration during the planning of the audit?

• A)Considering the independence of members of the audit team
• B)Performing some of the audit procedures prior to the end of the year under audit
• C)Considering the ability and expertise of the audit team with respect to accounting and auditing issues in the client's industry
• D)Considering the impact of tests of controls on the overall assessment of control risk

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Definitions:

Parent Company

A company that holds a controlling interest in one or more other companies, referred to as subsidiaries, allowing it to control their operations and policies.

Investment Date

The specific date on which an investment is made or acquired by an investor, marking the commencement of recognition in financial statements.

Acquisition Date

The effective date on which control of a business or asset is obtained by the acquirer.

Declaration Date

The specific date on which a company announces a dividend or distribution to its shareholders.