Which of the following procedures would an auditor LEAST likely perform during the planning stage of an audit?

Answer options:

Performing analytical procedures to identify unusual transactions.

Obtaining an understanding of the entity's internal control.

Confirming material accounts receivable balances.

Discussing the timing of the audit with management.

How to approach this question

Distinguish between Planning (Risk Assessment) and Fieldwork (Evidence Gathering). Confirmations are evidence gathering.

Full Answer

C.Confirming material accounts receivable balances.✓ Correct

Confirming material accounts receivable balances.

Planning involves risk assessment, understanding the entity, and strategy. Confirmations are substantive tests of details performed in response to assessed risks, typically later in the process.

Common mistakes

Thinking all procedures happen at once.

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