ExpertEasy1 markMultiple Choice
CPA · Question 22 · Area II: Risk Assessment
Which of the following procedures would an auditor LEAST likely perform during the planning stage of an audit?
Which of the following procedures would an auditor LEAST likely perform during the planning stage of an audit?
Answer options:
A.
Performing analytical procedures to identify unusual transactions.
B.
Obtaining an understanding of the entity's internal control.
C.
Confirming material accounts receivable balances.
D.
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
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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