Reference no: EM131786660
Question - The following are various activities an auditor does during audit planning.
1. Send an engagement letter to the client.
2. Tour the client's plant and offices.
3. Compare key ratios for the company to industry competitors.
4. Review management's risk management controls and procedures.
5. Identify potential related parties that may require disclosure.
6. Identify whether any specialist are required for the engagement.
7. Review accounting principles unique to the client's industry.
8. Determine the likely users of the financial statements.
Required:
For each procedure, indicate which of the first four parts of audit planning the procedure primarily relates to: (1) accept client and perform initial audit planning; (2) understand the client's business and industry; (3) assess client business risk; (4) perform preliminary analytical procedures.
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How much overhead should be applied to job
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How much is the company predetermined overhead rate
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What is the equilibrium of the game
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How should this given situation affect your audit plan
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Perform preliminary analytical procedures
: For each procedure, indicate which of the first four parts of audit planning the procedure primarily relates to: perform preliminary analytical procedures
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Discrepancy between existing and desired state of affairs
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Compute the current fair price of the stock
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How much is cost of goods sold for the year
: Beginning and ending work in process for 2010 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year
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What types of compensation or benefits would communicate
: What types of compensation or benefits would communicate to you that you are personally valued by your organization?
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