The element of the audit planning process most likely to be agreed upon with the entity before implementation of the audit strategy is the determination of the
A) evidence to be gathered to provide a sufficient basis for the auditor's opinion.
B) procedures to be undertaken to discover litigation, claims, and assessments.
C) pending legal matters to be included in the inquiry of the entity's attorney.
D) timing of inventory observation procedures to be performed.

Question

Quizplus · Accepted Answer

The timing of inventory observation procedures is often agreed upon with the entity before the audit strategy is implemented, as it involves coordinating with the entity to physically observe the inventory. The other choices may be discussed with the entity during the planning process, but are more likely to be determined during the course of the audit based on the auditor's own observations and analysis.

The Element of the Audit Planning Process Most Likely to Be