Which of the Following Audit Planning Activities Adds the Least

question 164

Multiple Choice

Which of the following audit planning activities adds the least value in understanding the current risk exposures facing the corporation?

• A) Review of organizational strategic plans and operational plans.
• B) Consultation with senior management and the audit committee.
• C) Review of the external auditor's risk assessment.
• D) Review of corporate performance reporting and benchmarking.

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Definitions:

Wage Rate

Wage rate is the amount of money paid to workers for their labor, per unit of time, reflecting compensation for employment.

Interest Rate

The percentage charged on a loan or paid on savings over a period, typically expressed as an annual percentage of the principal.

Urban Land

Areas of land characterized by higher population density and vast human features in comparison to areas surrounding it, often dedicated to commercial, residential, and infrastructure use.

Fixed

Something that is constant or unchangeable over a certain period of time, such as a fixed interest rate.