Read the following statements: 1. Once the audit strategy and plan are formulated, both should not be changed. 2. The process of setting the audit strategy assists the auditor in determining the resources necessary for the audit. 3. The availability of audit resources should be a major factor in determining the audit strategy and plan. 4. Preliminary engagement activities form part of the planning stage. 5. The audit strategy and plan should never be discussed with the client. 6. If the auditor understands the client's business environment, it is not that important for the auditor to evaluate the company's accounting system and related internal controls. 7. Because it is actually carried out by the auditor, observation is the most valuable test of control. 8. In planning an audit, the use of Analytical Procedures may be used to assist in assessing the risks of material misstatement. 9. The first two stages of the audit process can be described as 'gathering audit evidence' and 'evaluating, concluding, and reporting' 10. The objective of the planning stage of the audit is to ensure that the client has sufficient funds to pay the auditors. 103 HAUD230-1-Jul-Dec2022-FA2-DE-05072022 ANNEXURE I: FORMATIVE ASSESSMENT 2 REQUIRED: Indicate whether each of the above statements are TRUE or FALSE, including a brief explanation, therefore. Marks will be awarded as follow: - Stating True or False for each statement (10 marks) - Explanation provided (10 marks) Use the following table format to present your