Which of the following procedures would an auditor most likely include in the planning phase of a financial statement audit?

Question

Quizplus · Accepted Answer

Choice "A" is correct. In all audits, the auditor should obtain a sufficient understanding of each of the five components of internal control in order to properly plan the audit. The entity's risk assessment process is one of the five components of internal control. Choice "B" is incorrect. Identification and testing of specific control activities generally occurs during the performance of the audit. Choice "C" is incorrect. Evaluating the reasonableness of accounting estimates generally occurs during the performance of the audit. Choice "D" is incorrect. Cutoff testing of sales and purchases generally occurs during the performance of the audit.

Which of the Following Procedures Would an Auditor Most Likely