The process used for developing an audit strategy for various assertions begins with _________.
A)understanding the flow of transactions in a given transaction cycle
B)identifying what can go wrong from initiating the transaction to the recording in the general ledger
C)assessing whether controls exist to mitigate what can go wrong
D)identifying relevant controls, performing tests of controls, and evaluating results

Question

Quizplus · Accepted Answer

Understanding the flow of transactions in a given transaction cycle is the first step in developing an audit strategy, as it provides the auditor with a comprehensive view of how transactions are processed and where potential risks may arise.

The Process Used for Developing an Audit Strategy for Various