Question

When planning an audit, the plan should include a high-level description of the nature, timing, and extent of all of the following EXCEPT: Group of answer choices A. Planned audit procedures for each material account balance and class of transactions. B. Planned risk assessment procedures to assess the risks of material misstatements. C. Other audit procedures needed to comply with GAAS. D. Preliminary assessments of risks of competitors of the client being audited.

Answer 1

Answer: Option D. Preliminary assessments of risks of competitors of the client being audited.

While planning an audit of a client, the auditor is required to include a high-level description of the nature, timing, and extent of the audit procedures for material accounts, for assessment of the risks of material misstatements, and other audit procedures as prescribed under the Generally Accepted Auditing Standards (GAAS). However, the auditor would not be concerned with the assessment of risks of the competitors of the auditee. Hence, option D. is the correct answer.