When an auditor is planning an audit,the 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.

Question

Quizplus · Accepted Answer

When planning an audit, the auditor should make preliminary judgments about materiality levels for audit purposes. This helps the auditor determine the scope of testing and the level of verification necessary for financial information. While the auditor may consider the results of the internal control questionnaire, this does not necessarily impact the extent of substantive procedures. The auditor also does not conclude whether changes in compliance with prescribed control procedures justify reliance on them during the planning phase. Additionally, preparing a preliminary draft of the management representation letter typically occurs later in the audit process.

When an Auditor Is Planning an Audit,the Auditor Should