When preparing the audit plan, the auditor must ensure that they acquired significant understanding of the entity, its environment, and its internal controls.Group of answer choicesTrueFalse

Understanding the business and using this information appropriately assists the auditor in, exceptSelect one:a.Planning and performing the audit effectively and efficiently.b.Evaluating audit evidence.c.Assessing risks and identifying potential problemsd.Deciding whether to do tests of controls

Explain why an auditor needs to obtain an understanding of the components of internal control relevant to the preparation of the financial statements.

In planning an audit, the auditor first established the audit plan then develop the audit strategy for the engagement.Group of answer choicesTrueFalse

The auditor should perform the following risk assessment procedures to obtain an understanding of the entity and its environment, including its internal control, except:Select one:a.Inquiries of the entity's external legal counsel or of valuation experts that the entity has used.b.Observation and inspection.c.Inquiries of management and others within the entity.d.Analytical procedures.

When obtaining an understanding of controls that are relevant to the audit, the auditor shall evaluate the design of those controls and determine whether they have been implemented, by performing procedures in addition to inquiry of the entity's personnel.Select one:TrueFalse