Audit Planning MCQs 2026

Regarding Planning analytical procedures in Audit Planning, the accurate view is

1. Acomparing expectations to preliminary data to identify anomalies✓
2. Bonly at report stage✓
3. Cignore industry trends✓
4. Dno investigation of variances✓

In Audit Planning, Preliminary engagement activities primarily means

1. Aimmediate signing of clean opinion✓
2. Bno client inquiry✓
3. Ccontinuance evaluation and ethical compliance before acceptance✓
4. Dignoring independence✓

A key aspect of Understanding the entity is that it involves

1. Aonly reading prior year report✓
2. Bno management inquiry✓
3. Cobtaining knowledge of business industry and internal control✓
4. Dignoring regulatory environment✓

Overall audit strategy document is best described as

1. Aclient product catalogue✓
2. Bemployee birthday list✓
3. Crecord of key decisions on team deployment and reporting deadlines✓
4. Dcafeteria schedule✓

A key aspect of Performance materiality is that it involves

1. Aalways double overall materiality✓
2. Bequal to trivial threshold✓
3. Cnot used in practice✓
4. Damount set below overall materiality to reduce aggregation risk✓

Which statement about Using internal auditors work is correct

1. Aevaluating objectivity and competence before relying on work✓
2. Bautomatic reliance always✓
3. Cignore internal audit charter✓
4. Dno coordination✓

A key aspect of Initial audit planning is that it involves

1. Aadditional procedures when no prior year audit by firm✓
2. Bidentical to recurring always✓
3. Cno opening balance work✓
4. Dignore predecessor auditor✓

Audit Planning: Recurring audit planning can be defined as

1. Astart fresh ignoring history always✓
2. Bno review of prior misstatements✓
3. Cdiscard all prior working papers✓
4. Dupdating plan based on prior knowledge and changes✓

In Audit Planning, Audit planning primarily means

1. Adeveloping overall strategy and detailed plan for the engagement✓
2. Bstarting fieldwork without objectives✓
3. Cignoring client industry✓
4. Dskipping risk assessment✓

Regarding Audit strategy in Audit Planning, the accurate view is

1. Ahigh-level approach including scope timing and resource allocation✓
2. Bdetailed tick list only✓
3. Crandom test selection✓
4. Dno partner involvement✓

Significant risks is best described as

1. Aimmaterial rounding errors only✓
2. Btypographical errors only✓
3. Call risks treated equally✓
4. Drisks requiring special audit consideration including fraud risk✓

Regarding Trivial threshold in Audit Planning, the accurate view is

1. Asame as planning materiality✓
2. Bzero always✓
3. Cmisstatements below level not accumulated except in aggregate✓
4. Dequal to net profit✓

A key aspect of Group audit planning is that it involves

1. Aignore subsidiaries always✓
2. Bonly parent ledger review✓
3. Cplanning for components and consolidation in group financial statements✓
4. Dno component auditors✓

Risk assessment procedures is best described as

1. Ainquiries analytical procedures and observation to identify risks✓
2. Bonly final analytical review✓
3. Cno fraud discussion✓
4. Dignore IT environment✓

Regarding Team briefing in Audit Planning, the accurate view is

1. Ano communication to staff✓
2. Bonly email to client✓
3. Cpost-report discussion only✓
4. Dcommunication of strategy risks and assignments to engagement staff✓

Which statement about Using experts is correct

1. Aauditor must be expert in all fields✓
2. Bauditor may use specialist for valuations or complex areas✓
3. Cexperts replace auditor opinion✓
4. Dno documentation of expert work✓

Audit Planning: Communication with those charged with governance can be defined as

1. Aonly communicate to marketing staff✓
2. Bafter report signed only✓
3. Ctimely discussion of plan scope and significant findings✓
4. Dnever discuss fraud risk✓

Audit Planning: Audit plan can be defined as

1. Amore detailed program of nature timing and extent of procedures✓
2. Bsingle generic template always✓
3. Cno update during audit✓
4. Dclient prepared plan only✓

Materiality in planning is best described as

1. Azero tolerance for all items✓
2. Bthreshold used to plan nature timing and extent of procedures✓
3. Csame as tax exemption limit always✓
4. Dclient chosen number without analysis✓

Audit Planning: Audit timetable can be defined as

1. Aopen-ended with no deadlines✓
2. Bschedule of key milestones from planning through reporting✓
3. Conly client marketing calendar✓
4. Dignore reporting deadline✓