Which of the following factors would a CPA ordinarily consider in the planning stage of an audit engagement?

Question

Quizplus · Accepted Answer

Choice "C" is correct. During the planning stage, the auditor assesses the risk of material misstatement in financial statement accounts. Based on this assessment, the auditor plans the audit procedures to provide reasonable assurance that material misstatements in the financial statements will be detected. Additionally, during the planning stage, conditions may come to the auditor's attention that indicate a necessary extension of audit tests. The auditor would need to consider this factor in determining the time budget and staffing needs for the engagement. Choices "A", "B", and "D" are incorrect. The auditor would need to consider both factors (financial statement accounts likely to contain a misstatement and conditions that require an extension of audit tests) in planning the audit.

Which of the Following Factors Would a CPA Ordinarily Consider