What Are the Three Main Reasons Why the Auditor Should

question 25

Multiple Choice

What are the three main reasons why the auditor should properly plan engagements?
1) to enable the auditor to obtain sufficient appropriate evidence
2) to help keep audit costs reasonable
3) to avoid misunderstandings with the client
4) to earn audit fees for the firm.

• A) 1, 2, 3
• B) 1, 2, 4
• C) 1, 3, 4
• D) 2, 3, 4

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Definitions:

Output Module

A component in a control system that sends signals or power from the system to the external environment.

PLC System

A PLC system (Programmable Logic Controller) is a digital computer used for automation of electromechanical processes, such as control of machinery on factory assembly lines.

Programming Terminal

A combination of keyboard and monitor used to insert, modify, and observe programs stored in a PLC.

Preventive Maintenance

Scheduled maintenance activities designed to prevent equipment failures before they occur.