Which one of the following is NOT considered to be part of planning?
Correct answer: D. Considering whether the financial statements show a true and fair view
- A. Background i.e. industry
- B. Previous year's audit i.e. any qualifications in the report
- C. Considering the work to be done by the client staff e.g. internal audit
- D. Considering whether the financial statements show a true and fair view
Explanation
Planning considers the industry, previous audits, and work performed by client staff such as internal audit. Deciding whether the financial statements present a true and fair view is the overall audit conclusion, not a planning activity.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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