Design and perform tests of controls for the sales and collection cycle is part of which phase of the audit?
A) Phase I
B) Phase II
C) Phase III
D) Phase IV

Question

Quizplus · Accepted Answer

Designing and performing tests of controls for the sales and collection cycle is part of Phase II of the audit, which is the "planning and risk assessment" phase. In this phase, the auditor plans the scope, timing, and nature of the audit procedures based on the understanding of the client's internal control system and the risks associated with the audit. Therefore, the best choice is B - Phase II.

Design and Perform Tests of Controls for the Sales and Collection