Your Preliminary Audit Plan for Astro Ltd States That Planning

question 8

Multiple Choice

Your preliminary audit plan for Astro Ltd states that planning materiality is set at one per cent of total assets.This planning materiality amount:

• A)will need to be used for evaluation at the end of the engagement to judge the overall presentation of the financial report, because that was the level used to set the scope of testing.
• B)should not be revised in mid-audit.
• C)may be revised based on the results of audit tests and new information as the audit progresses.
• D)is appropriate for planning, but the evaluation materiality amount must be based on a percentage of revenue.

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Definitions:

Price Objection

A price objection is a customer's resistance or reluctance to purchase a product or service based on its cost, expressing concerns over value or affordability.

Source Objection

A loyalty-related objection by which the prospect states a preference for another company or salesperson, and may specify a dislike for the salesperson’s company or self.

Competitor's Product

This term refers to the goods or services offered by competing companies in the market.

No-Need Response

A type of sales objection where the potential customer indicates that they do not have a need for the product or service being offered.