There are eight parts of the planning phase of audits. Which part is understanding internal control and assessing control risk? What parts precede and follow that understanding and assessing control risk?

1.Understanding internal control and assessing control risk is eight part of planning.

2. What parts precede understanding internal control and assessing control risk?

A.

(1) accept client and perform initial audit planning, (2) understand the client's business and industry, (3) perform preliminary analytical procedures, (4) set preliminary judgment of materiality and performance materiality, (5) assess inherent risk, and (6) identify significant risks due to fraud or error.

B.

(1) understand the client's business and industry, (2) accept client and perform initial audit planning, (3) perform preliminary analytical procedures, (4) set preliminary judgment of materiality and performance materiality, (5) identify significant risks due to fraud or error, and (6) finalize overall audit strategy and audit plan.

C.

(1) accept client and perform initial audit planning, (2) understand the client's business and industry, (3) perform preliminary analytical procedures, (4) set preliminary judgment of materiality and performance materiality, (5) identify significant risks due to fraud or error, and (6) assess inherent risk.

D.

(1) accept client and perform initial audit planning, (2) understand the client's business and industry, (3) set preliminary judgment of materiality and performance materiality, (4) perform preliminary analytical procedures, (5) finalize overall audit strategy and audit plan, and (6) assess inherent risk.

3. What parts follow understanding internal control and assessing control risk?

A.

Only assessing the inherent risk follow understanding internal control and assessing control risk.

B.

Only identifying significant risks due to fraud or error follow understanding internal control and assessing control risk.

C.

Only finalizing the audit strategy and audit plan follow understanding internal control and assessing control risk.

D.

There are no parts that follow understanding internal control and assessing control risk.

This is a 3 parts question with 3 answers multiple choice