Which of the Following Is Not a Consideration in the Planning

question 25

Multiple Choice

Which of the following is not a consideration in the planning phase of the audit?

• A)Obtaining an understanding of the entity's business and industry.
• B)Assessing competence to perform the audit.
• C)Considering audit risk.
• D)Making preliminary judgements about materiality levels.

---

Definitions:

Budget Period

A specific time frame during which financial resources are planned, allocated, and monitored.

Payroll Deductions

Amounts that are automatically withheld from an employee's wages by their employer, typically for taxes, social security, and benefits.

Variable Expenses

Costs that change in amount and type, depending on activities and choices, such as eating out, entertainment, and travel.

Fire Extinguisher

A portable device used to put out small fires by discharging a substance that cools the burning material, deprives the flame of oxygen, or interferes with the chemical reactions occurring in the flame.