2. Which one of the following is NOT considered to be part of planning?

A) Background i.e. industry
B) Previous yearâ??s audit i.e. any qualifications in the report
C) Considering the work to be done by the client staff e.g. internal audit
D) Considering whether the financial statements show a true and fair view



3. Audit risk is composed of 3 factors. Which of the following is NOT one of those factors?

A) Compliance risk
B) Detection risk
C) Control risk
D) Inherent risk



4. Which of the following is most crucial to a purchase department?

A) Reducing the cost of acquisition
B) Selecting suppliers
C) Authorizing the acquisition of goods
D) Assuring the quality of goods



5. Which of the following is NOT a main element of a sales system?

A) Receiving orders from customers
B) Marketing
C) Dispatching the goods and invoicing customers
D) Recording sales and debtors in the accounts