Auditors Perform Various Tasks in Planning an Audit Engagement

question 63

Essay

Auditors perform various tasks in planning an audit engagement.Provide an overall description of how each task is performed and its purpose.
a.Obtain an understanding of the client's business.
b.Assess audit risk and materiality for the engagement.
c.Assess fraud risk.
d.Assess the risk of material misstatement of assertions about financial statement accounts and classes of transactions.

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Definitions:

External Validity

The extent to which the results of a study can be generalized to other situations and to other people.

Individualized Approach

A method tailored to meet the unique needs of an individual, considering their personal circumstances, preferences, and characteristics.

External Validity

The extent to which the findings of a study can be generalized to other situations, settings, or groups.

Federal Government

The national government of a federated state, which shares sovereignty with the individual state or provincial governments.