Planning an Audit on FS_G4

Why does an auditor make a plan before starting the audit?

• To make the audit cheaper for the client.

• To find every single mistake.

• To do the Audit well and property

two main things an auditor creates during planning?

• A bill and a report

• A general strategy and a detailed plan.

• The financial statements.

An account that is riskier because of its nature

•  Planning Risk

• Control Risk

•  Inherent Risk

Planning is a one-time activity done only at the very beginning.

• True
• False

detailed plan is more specific than the general strategy.

• True
• False

Planning for a small company must be a long and complicated process.

• True
• False

 An "audit program" is?

• A talk with the company's bosses

• A list of instructions for the audit team on what to do.

• The main goal of the audit.

  
  

"Extent" in an audit plan means

• What kind of test to do

• When to do the test.

•  How many items to check.

  
  

Performance Materiality" is an amount used for testing that is:

•  Smaller than the overall big number.

  
  

• Larger than the overall big number.

  
  

 Way to plan by comparing numbers?

• Counting Inventory

• This year's sale vs. last year's