Parker is the in-charge auditor for the upcoming annual audit of FGH Company, a continuing audit client. Parker will supervise two assistants on the engagement and will visit the entity before the fieldwork begins.

Parker has completed the engagement letter and established an understanding with the Chief Audit Executive or Head of Internal Auditing on the assistance to be provided by the IAF.

Which of the following activities should be considered as preliminary engagement and planning activities?

Note: Select all that apply.

Check All That Apply

Reading the current years interim financial statements.

Reading the current years interim financial statements.

Discussing the scope of the examination with management of the client.

Discussing the scope of the examination with management of the client.

Establishing the timing of the audit work.

Establishing the timing of the audit work.

Arranging with the client for adequate working space.

Arranging with the client for adequate working space.

Coordinating the assistance of client personnel in data preparation.

Coordinating the assistance of client personnel in data preparation.

Establishing and coordinating staffing requirements, including time budget.

Establishing and coordinating staffing requirements, including time budget.

Holding a brainstorming meeting with assistants assigned to the engagement and discussing possible fraud-related issues.

Holding a brainstorming meeting with assistants assigned to the engagement and discussing possible fraud-related issues.

Determining the extent of involvement, if any, of consultants, specialists, and internal auditors.

Determining the extent of involvement, if any, of consultants, specialists, and internal auditors.

Considering the effects of applicable accounting and auditing pronouncements, particularly recent ones.

Considering the effects of applicable accounting and auditing pronouncements, particularly recent ones.

Preparing documentation setting forth the preliminary audit plan.

Preparing documentation setting forth the preliminary audit plan.

Establish overall materiality and tolerable misstatement.

Establish overall materiality and tolerable misstatement.

Making a preliminary assessment about control risk.

Making a preliminary assessment about control risk.

Updating the prior years written audit program and possibly developing new procedures as warranted by changes in the business.

Updating the prior years written audit program and possibly developing new procedures as warranted by changes in the business.

Checking the mathematical accuracy of the companys prior year bank statements.

Checking the mathematical accuracy of the companys prior year bank statements.

Making the final determination of control risk.

Making the final determination of control risk.

Communicating the established preliminary materiality level to management.

Communicating the established preliminary materiality level to management.

Communicating with the clients customers regarding the correct valuation of accounts receivable.

Communicating with the clients customers regarding the correct valuation of accounts receivable.

Writing a rough draft of the audit opinion based on the preliminary assessment.

Writing a rough draft of the audit opinion based on the preliminary assessment.