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CS Professional · Internal and Forensic Audit · Internal Audit Engagements and Planning

Which of the following is a matter SA 300 says planning includes considering before the auditor identifies and assesses the risks of material misstatement?

Obtaining a general understanding of the legal and regulatory framework applicable to the entity and how it is complying. SA 300 lists this, along with analytical procedures, materiality and involvement of experts, as planning matters considered before identifying and assessing risks of material misstatement.

  1. ASigning the audit report
  2. BObtaining a general understanding of the legal and regulatory framework applicable to the entity and how it is complyingCorrect
  3. CEvaluating the final misstatements accumulated
  4. DIssuing the management representation letter

Explanation

SA 300 lists analytical procedures as risk assessment procedures, understanding the legal and regulatory framework and compliance, materiality, involvement of experts and other risk assessment procedures as items to consider before risk assessment. The other options occur at completion stage.

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