ICAEW ARF · Chapter 3 · Question 13 of 13
Which of the following would be included in the detailed audit plan rather than the overall audit strategy?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The specific procedures to be performed on trade receivables, including sample sizes
Explanation
The audit strategy sets the scope, timing and direction of the audit and the resources needed. The audit plan is more detailed, setting out the nature, timing and extent of the specific procedures to be performed, such as the tests on receivables and their sample sizes.
More Planning, materiality and risk assessment MCQs
- Q2Audit risk is a function of inherent risk, control risk and detection risk. Which of these can the auditor directly influence?
- Q3An auditor has assessed both inherent risk and control risk for trade receivables as high. What is the appropriate response?
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- Q5Overall materiality for an audit is £60,000. The firm sets performance materiality at 75% of overall materiality and treats misstatements…
- Q6Which of the following misstatements is most likely to be material by its nature, even though the amount is small?