The first step in auditing investing activities _______.

Question

Quizplus · Accepted Answer

The first step in auditing investing activities involves understanding the assets that are needed to support the entity's operations. This includes identifying and analyzing the entity's investments in property, plant, and equipment, as well as any intangible assets or investments in other entities. This information is critical for understanding the entity's financial position and assessing the risk of material misstatement. Issuing a preliminary audit opinion is not the first step in the audit process, but rather occurs after the auditor has completed their procedures and obtained sufficient evidence.

The First Step in Auditing Investing Activities _______