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:

Dexedrine

A brand name for dextroamphetamine, a central nervous system stimulant medication used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy.

Benzedrine

A brand name for amphetamine, which was historically used as a stimulant for various conditions but is now controlled due to potential for abuse.

Angel Dust

A street name for the drug phencyclidine (PCP), known for its hallucinogenic and dissociative properties.

PCP

Primary Care Physician; a healthcare provider who offers general medical care for various health issues and coordinates specialized care when necessary.