In Developing an Overall Audit Strategy, an Auditor Should Consider

question 63

Multiple Choice

In developing an overall audit strategy, an auditor should consider:

• A) Whether the allowance for sampling risk exceeds the achieved upper precision limit.
• B) Findings from substantive tests performed at interim dates.
• C) Whether the inquiry of the client's attorney identifies any litigation, claims, or assessments not disclosed in the financial statements.
• D) Preliminary evaluations of materiality, audit risk, and internal control.

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Definitions:

Divergent Thinking

An intellectual strategy or technique designed to elicit innovative solutions by considering a wide range of options.

Stapler

A mechanical device that joins pages of paper or similar material by driving a thin metal staple through the sheets and folding the ends.

Divergent Thinking

A cognitive approach or methodology adopted to produce inventive concepts through the examination of numerous potential answers.

Functional Thinking

An approach focusing on understanding the purpose and practical applications of objects, ideas, or processes rather than their theoretical aspects.