Question

Which of an area of audit planning that is most critical in the process?

Answer 1

_{In planning an audit process the most critical area is " areas where risk is high " higer the risk higer the audit procedure need to be complied to in order to derive an audit conclusion on which audit opinion is based}

The skills set of audit staff should have been considered before deciding and selecting the audit

In case where the risk is high the auditor needs to perform additional audit procedure that is external confirmation, physical examination of inventory etc

If Internal control system in the organisation is strong he might perform less audit procedure that is taking sampling basis

Where as in case of Internal control system in the organisation is weak he should perform detailed audit procedure full examination

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