When Planning an Audit, an Auditor Should

question 47

Multiple Choice

When planning an audit, an auditor should:

• A) Consider whether the extent of substantive procedures may be reduced based on the results of the internal control questionnaire.
• B) Make preliminary judgments about materiality levels for audit purposes.
• C) Conclude whether changes in compliance with prescribed control procedures justifies reliance on them.
• D) Prepare a preliminary draft of the management representation letter.

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Definitions:

Romantic Partners

Individuals engaged in a romantic relationship with one another, often characterized by love, commitment, and emotional bonding.

Positive Illusions

Unrealistically favorable attitudes people have towards themselves, their situations, or their future prospects.

Relational Bias

The tendency to perceive or judge in favor of those with whom one has a close relationship or to whom one feels similar.

Self-Disclosure

The sharing of information about oneself.