During this phase of the audit, the auditor must gain a thorough understanding of the client's business and financial reporting systems.When completing this phase, the auditors review and assess the risks and controls related to the business.
A)Tests of controls
B)Substantive tests
C)Audit completion / reporting
D)Audit planning

Question

Quizplus · Accepted Answer

This phase is known as the audit planning phase, as it involves gaining an understanding of the client's business and financial reporting systems, reviewing and assessing risks and controls related to the business, and planning the audit approach accordingly.

During This Phase of the Audit, the Auditor Must Gain