[Anonymous]

(Wiley M/C #59, p.72-2010 book)

Which of the following would be least likely to be considered an audit planning procedure?

A) use engagement letter

B) develop overall audit strategy

C) perform Risk assessment

D) develop audit plan

Now all 4 are correct answers (according to Becker). Wiley saids answer is (C). I was thinking it was (A). How?

Now Becker saids a “Written audit plan” of audit procedures is required during planning. Is this “written plan” the same as the engagement letter??

Okay on the first page of A3 (Becker), it saids that Risk Assessment is part of planning and is required (along with developing

[kevin_bacon]

C is not correct because it says “perform”

[rknight21]

like the previous poster said the word “perform” is a give away..if C had said “consider” then maybe it wouldnt have been the answer to that question… performing risk assesment comes when evaluating internal controls which isnt done in the planning stage

[rknight21]

and written audit plan isnt an engagement letter… it is the same thing as a written audit program which is needed for every audit. it lists the objectives of the audit and the of strategy….

also A could have been the answer being that a written document must be presented to the client but it doesnt have to be an engagement letter… engagement letters are just mostly accepted as that written documents.

so i would have narrowed it down to A & C and chose C

[Anonymous]

thanks for your responses! makes sense, the one tricky word “perform” gosh! lol

[MOMCPA2B]

I would have picked C becuase just because perform is active while the others are passive.

I cant wait for this to be over.
AUD-7/25/11-77
BEC-11/27/11-Failed(UGH)Back to the drawing board
REG-2/27/12
FAR- Aug 2012

[Account Ant]

Isn't engagement letter used before planning stage? I think enagagement letter is to establish understanding between client and cpa before planning. Would you guys explain why A is incorrect?

FAR 70,89
REG November 2014
BEC Didn't even look at it.
AUD 83

[Anonymous]

The answer should be A, engagement letter is established before even audit planning starts.

Think about it, how can u even start an engagement at the first place without the engagement letter, don't metion planning it.

Now on my 2011 Becker book, it said exactly “4. Perform risk assessment procedures” as part of planning on page A3-9.

So I am 99.9% sure the answer is A

[tulip]

Regarding answer choice A, note that it says “use” engagement letter. That is why it is part of the planning process. The manager is taking the language from the executed engagement letter and using it as the framework for the audit plan.

BEC - 10/18/2010 - 79
FAR - 10/28/2010 - 82
AUD - 11/04/2010 - 73; 02/18/2011 - 86 - IT'S OVER!!!!!!
REG - 11/21/2010 - 83

[Author]

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