On February 3, 2022, Brawley and Salameh, CPAs were engaged to audit the financial statements of Galvez Metals Company for the year ended March 31, 2022. An engagement letter was signed by both parties on that date. Galvez Metals in a wholesaler purchasing precious metals and reselling them to hobby and craft shops.

This is the first year that Brawley and Salameh have audited Galvez. Galvez metal is a publicly traded corporation which first offered common stock to the public in 2017. The previous auditor issued unqualified opinions on Galvezs financial statements in each of the previous years. The Sarbanes-Oxley Act requires audit partner rotation every five years. Galvezs Board of Directors has decided to rotate the entire audit firm every five years in order to get fresh perspectives.

Prior to accepting the engagement, Brawley and Salameh completed all the appropriate procedures, including communicating with the previous auditor and gathering other information to assess the integrity of Galvezs management and Board of Directors. They received no indication that management or the board lacked integrity. The previous auditor reported that there had been no disagreements about accounting principles and that they had found no material weaknesses in Galvezs internal controls.

Samantha Mann, a staff accountant on the audit team, was asked to prepare a checklist to be used by the audit team members charged with planning the engagement. The checklist is intended to ensure that no important points are overlooked during the planning process. Fieldwork is scheduled to begin on April 17, 2022. On April 5, Samantha prepared the planning checklist shown below

Q/ Identify ten inappropriate items that are listed on Samanthas checklist. (There may be more.)

1. Communication with the client. While planning the engagement, have members of the audit team discussed:
   1. the general scope and timing of the audit work with Galvezs management, board of directors, or audit committee?
   2. The risk of misstatement due to fraud for each assertion for every account with Galvezs management, board of directors, and the audit committee?

2. Understanding the engagement. While planning the engagement, have the following been considered?
   1. Galvezs accounting policies and procedures
   2. Items on the financial statements that are likely to require adjustment
   3. The types of reports expected to be provided
   4. The effects of any new accounting and auditing pronouncements
   5. The methods of audit sampling to be used during the engagement.
   6. Whether the method of sampling selected is likely to be approved by Galvez Metals management team.
   7. The extent of involvement by the internal auditors of Galvez Metals
   8. Procedures to evaluate the competence and objectivity of the internal auditors.

III. Engagement personnel

1. Has a time budget for the engagement been prepared?
2. Has the time budget been approved by the partner in charge of the audit?
3. Has the time budget been approved by Galvezs controller and audit committee?
4. Does the time budget allow the audit firm to earn the desired profit on the engagement?
5. When assigning personnel to the engagement have the following been considered?
   1. Engagement size and complexity
   2. Availability of audit firm staff members
   3. Timing of the work to be performed
   4. The ethical requirement to have only CPAs work on the engagement

IV. Understanding the clients business.

1. Has an overall understanding of Galvezs operations been obtained by reviewing?
   1. Financial statements from the prior three years and interim financial statements for the current year?
   2. Minutes of stockholders and board of directors meetings? iii. Filings with regulatory agencies?
   4. The prior auditors management letters for the past two years?
   5. The Codification of Statements on Auditing Standards issued by the AICPA?

2. Have members of the audit team obtained knowledge about:
   1. Economic conditions and government regulations? ii. Specialized accounting practices of the industry? iii. Galvezs organization and operating characteristics? iv. Fraud risk factors?

2. 5. Factors affecting inherent risk?
   6. Galvezs accounting system?
3. Have audit team members:
   1. Determined planning materiality?
   2. Obtained an understanding of Galvezs internal control sufficient to plan the audit?
   3. Determined whether their investments in Galvezs stock are material?

V. Assessing risk

1. Has detection risk been determined so that the audit team knows how much inherent risk is acceptable?
2. Has the audit team considered asking the internal auditors at Galvez to assess inherent risk because of their more in-depth knowledge of the client?
3. Has the audit team considered asked the internal auditors to evaluate the significant accounting estimates made by Galvezs management in order to save time on the engagement?
4. Has the audit team evaluated the design and implementation of control procedures?
5. If control risk is assessed at the maximum level is the scope of substantive testing appropriately decreased?
6. If control risk is assessed at the maximum level, has the operating effectiveness of the controls been tested?

6. Illegal Acts. Have the following matters been considered in assessing the risk that Galvez has not complied with laws and regulations having a material direct effect on the financial statements?
   1. Galvezs policies designed to prevent illegal acts.
   2. Galvezs understanding of the legal requirements pertaining to its business
   3. Has the audit team obtained managements written assurance that no employees of the company have committed any illegal acts of any type during the past year?

7. Analytical procedures. In planning the audit, have analytical procedures been used that:
   1. Enhance the auditors understanding of Galvezs business and the transactions of the year under audit?
   2. Identify areas that may represent specific risks relevant to the audit?
   3. Evaluate the adequacy of the notes to the financial statements?

VIII. Audit plan

a. Has an audit program been developed for the engagement and approved by the audit partner?