In what order should the following steps occur?
A. Set preliminary judgment of materiality and performance materiality.
B. Understand the client's business and industry.
C. Perform preliminary analytical procedures.
D. Accept the client and perform initial audit planning.
A) D, B, C, A
B) B, A, C, D
C) B, D, A, C
D) D, C, B, A

Question

Quizplus · Accepted Answer

The correct order starts with accepting the client and performing initial audit planning (D), then understanding the client's business and industry (B), followed by performing preliminary analytical procedures (C), and finally setting preliminary judgment of materiality and performance materiality (A). This sequence aligns with the logical progression of an audit process.

In What Order Should the Following Steps Occur