In Planning the Audit, an Auditor Takes 3 Basic Steps

question 73

Essay

In planning the audit, an auditor takes 3 basic steps in determining the audit procedures to be performed for any business cycle or class of transactions in order to gather audit evidence concerning possible misstatement due to error or fraud.List those three basic steps below.

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Definitions:

Profit (Loss)

The financial result of a company's operations and activities, determined by subtracting total expenses from total revenues over a given period.

Ounce

An ounce is a unit of weight commonly used in the United States and Britain, equivalent to 1/16 of a pound or about 28.35 grams.

Pounds

A unit of weight commonly used in the United States, equivalent to 0.453592 kilograms, or a British currency (GBP).

Hedged Delivery

A strategy used in trading and finance to minimize risk by taking compensating positions in related securities or commodities.