QUESTION 3 (20 Marks)

3.1. Briefly describe the activities undertaken by the auditor during the preliminary stage of the audit process? (5 marks)

3.2. Identify the main reasons why an audit firm may not wish to enter into a relationship with prospective clients? (3 marks)

3.3. What are the benefits of proper planning in the audit of annual financial statements? (5 marks)

3.4. Preliminary engagement activities form part of planning in the audit of annual financial statements. Is this true or false, explain? (3 marks)

3.5. There are four different types of audit opinion, briefly identify and explain these four types of audit opinion? (4 marks)