Which of the following should not be considered by the auditor before planning for an audit?

Degree of reliance expected to be placed on accounting system and internal control

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Setting of materiality levels

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Auditing requirements

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Requirements of creditors

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Solution

The correct option is C Requirements of creditors
Requirements of creditors is not a primary consideration for auditors before planning an audit.
But understanding the business, its internal controls, volume, etc is important to be known while planning the audit.

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Similar questions

Q. Which of the following should be considered by the auditor before planning for an audit?

Q. When an independent auditor decides that the work performed by internal auditors may have bearing on the nature, timing and extent of planned audit procedures, the independent auditor should evaluate objectively of the internal auditor. The most important factor influencing it would be _______________.

Q. Question : Reliance Ltd purchased a second hand machine for Rs.

56, 000

on October 1, 2001 and spent Rs.

28, 000

on its overhaul and installation before putting it to operation. It is expected that the machine can be sold for Rs.

6, 000

at the end of its useful life of 15 years. Moreover an estimated cost of Rs

1, 000

is expected to be incurred to recover the salvage value of Rs

6, 000

. Prepare Machine account and Provision for depreciation by fixed instalment method. Accounts are closed on December 31st every year.

Reliance Ltd purchased a second-hand machine for Rs 56,000 on October 1, 2001, and spent Rs 28,000 on its overhaul and installation before putting it to operation. It is expected that the machine can be sold for Rs 6,000 at the end of its useful life of 15 years. Moreover, an estimated cost of Rs 1,000 is expected to be incurred to recover the salvage value of Rs 6,000. Prepare Machine account and Provision for depreciation account for the first three years charging depreciation by fixed instalment method. Accounts are closed on December 31 st every year.

Reliance Ltd purchased a second-hand machine for Rs. 56,000 on 1st October 2014 and spent Rs. 28,000 on its overhaul and installation before putting it to operation. It is expected that the machine can be sold for Rs. 5,000 at the end of its useful life of 15 years. Moreover, an estimated account and provision for depreciation account for the first 3 years charging depreciation by fixed installment method. Accounts are closed on 31st december every year.

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Which of the following should not be considered by the auditor before planning for an audit?

The correct option is C Requirements of creditorsRequirements of creditors is not a primary consideration for auditors before planning an audit.But understanding the business, its internal controls, volume, etc is important to be known while planning the audit.

The correct option is C Requirements of creditors
Requirements of creditors is not a primary consideration for auditors before planning an audit.
But understanding the business, its internal controls, volume, etc is important to be known while planning the audit.