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

Question

Quizplus · Accepted Answer

Choice "D" is correct. The planning process should include application of analytical procedures, such as comparison of the financial statements with budgeted or anticipated results. Choice "A" is incorrect. Management representations are typically obtained at the end of the audit, not during the planning stage. Choice "B" is incorrect. Assuming all of those charged with governance are not also involved with managing the entity, the auditor is required to communicate with those charged with governance concerning adjustments arising from the current year's audit, not adjustments from the previous year. Choice "C" is incorrect. Inquiries are typically made of the client's attorney during the fieldwork stage of the audit, not during the planning stage.

Which of the Following Procedures Would a CPA Most Likely