Auditors Should Design the Written Audit Plan So That

question 12

Multiple Choice

Auditors should design the written audit plan so that:

• A)all material transactions will be selected for substantive testing.
• B)substantive tests prior to the balance sheet date will be minimized.
• C)the audit procedures selected will achieve specific audit objectives.
• D)each account balance will be tested under either tests of controls or tests of transactions.

---

Definitions:

Employee Involvement

The practice of involving employees in decision-making and problem-solving processes within an organization, to enhance commitment and productivity.

Preventive Maintenance

Maintenance activities performed regularly on equipment to reduce the likelihood of it failing, focusing on preventing problems before they occur.

Optimal Maintenance Policy

is a strategy developed to ensure that equipment and facilities are kept in the best possible condition, balancing costs and benefits to achieve the most efficient and effective maintenance operations.

Preventive Maintenance

Scheduled maintenance tasks performed on equipment and machinery to prevent unexpected breakdowns and ensure smooth operation.