ner$2201$ rkin, CPA, was engaged to audit the financial statements of Precious Metals Company $($PM$),$ for the year ended Oather $31.20$X$1.$M purchases precious metals at wholesale prices and resells them to crat cubs at retall.p is new dlient w o ene por stack was first offered to the public five years ago. PM received an unquaified opinion on its financlal statements in sach of the erien three years, but changes auditors after each engagement. in accepting the engagement, Larkin completednall of the appropriate client acceptance procedures.Larkin instructed Johnson, an assistant on the engagement, to draft a planning checklist that would assist Larkin in preparing the audit staff for the fieldwork that is scheduled to begin on October $17,20$X$1.$On October $5,20$X$1,$ Johnson prepared the planning check list below $($engagement letter points have been omitted$).$ Select the appropriate$/$inappropriate points that are included on the below Johnson's planning checklist.Johnson's planning checklistAppropriate$/$ InappropriateI. Understanding the engagementIn planning the audit, have the engagement personnel considered:$1.$PM$\text{'}$s accounting policies and procedures?$2.$ Financial statement items likely to require adjustment?$3.$The nature of the reports expected to be rendered?$4.$ The effects of accounting and auditing pronouncements,particularly new ones?$5.$ Methods of audit sampling to be used?$6.$Whether the method of sampling is likely to be approved by PM$?7.$The extent of involvement of other independent auditors or internal auditors?$8.$Procedures to evaluate competence and objectivity of PM$\text{'}$s internal auditors?In planning the audit, have engaged personnel discussed:$9.$The general scope and timing of the audit work with PM$\text{'}$s management, board of directors, or audit committee?$10.$The risk of misstatement due to fraud for each assertion for each account with PM$\text{'}$s management.board of directors. and the audit committee?