During the audit of Newberry Enterprises, Inc., a nationwide retailer of Tupperware and other plastics, the external auditors, Huckleberry CPA Firm are attempting to gain an understanding of the client's internal controls in order to more effectively plan their audit strategy. Which of the following represent prudent actions at this stage of the audit? (Select all that apply.) The external auditors should consider performing substantive procedures on the client's internal controls to ensure their effectiveness. The external auditors should consider requesting senior management compile a list of all high risk areas, so the auditors can focus their attention on these areas. The external auditors should attempt to understand internal controls that the client has enacted, such as entity-level controls. The external auditors may wish to examine the clients' processes and attempt to understand the flow of transactions. The partners of Greenfield CPA Firm have convened a planning meeting to discuss the best approach to auditing the purchasing cycle of one of their largest clients, Drake Inc, a supplier of kitchen appliances throughout the southeastern United States. The partners want to brainstorm and compile a list of key activities that would occur in the client's purchasing cycle. Which of the following would likely be considered key activities in this cycle? (Select all that apply.) Shipping goods and recording an appropriate receivable in the general ledger for all goods shipped on credit. Payment of accounts receivable for goods that have been received from the client's vendors. Determining the client's vendors and what payment terms have been established with each particular vendor. Receiving goods via the receiving function and recording a liability in the general ledger for the goods received