Which of the following procedures would a CPA most likely perform in the planning phase of a financial statement audit?

Question

Quizplus · Accepted Answer

Comparing financial information with nonfinancial operating data is a common procedure performed in the planning phase of a financial statement audit. This helps the auditor to gain a better understanding of the client's business operations, identify potential risk areas, and plan the audit procedures accordingly. Inquiries of the client's lawyer, cutoff tests, and recalculations of prior year's accruals and deferrals are usually performed in the substantive testing phase of the audit.

Which of the Following Procedures Would a CPA Most Likely