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Requirement a. Identify the phase of the audit in which each activity occurs. Phase of Audit Set acceptable audit risk and decide preliminary judgment about materiality 1. and performance materiality Understand internal control and assess 2. control risk. I. Plan and Design an Audit Approach Perform substantive analytical 3. procedures for accounts payable. II. Perform Tests of Controls and Substantive Tests of Transactions JII. Perform Substantive Analytical Procedures and Tests of Details of Balances 4. Confirm accounts payable. IV. Complete the Audit and Issue an Audit Report Perform tests of controls and substantive tests of transactions for the acquisition and payment and payroll and personnel 5. cycles. Perform other tests of details of balances 6. for accounts payable. Perform tests for review of subsequent 7. events. 8. Accept the client. 9. Issue the audit report Requirement b. Put parts 1 through 9 of the audit in the sequential order in which you will expect them to be performed in a typical audit. Sequential order Set acceptable audit risk and decide preliminary judgment about materiality and performance materiality. Understand internal control and assess control risk. 1 Perform substantive analytical procedures for accounts payable. 2 Confirm accounts payable. 3 Perform tests of controls and substantive tests of transactions 4 for the acquisition and payment and payroll and personnel cycles. 5 Perform other tests of details of balances for accounts payable. 7 Perform tests for review of subsequent events. Accept the client. Issue the audit report. Requirement c. Identify those parts that will frequently be done before July 31. (Select all that apply.) 1. Issue the audit report. 2. Set acceptable audit risk and decide preliminary judgment about materiality and performance materiality. 3. Perform tests for review of subsequent events. 4. Accept the client. 5. Perform substantive analytical procedures for accounts payable. 6. Perform tests of controls and substantive tests of transactions for the acquisition and payment and payroll and personnel cycles. 7. Understand internal control and assess control risk. 8. Confirm accounts payable. Perform other tests of details of balances for accounts payable 9

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