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    Question

    The process of financial audit begins

    with?
    A Planning Correct Answer Incorrect Answer
    B Reporting Correct Answer Incorrect Answer
    C Testing Correct Answer Incorrect Answer
    D Internal Control Correct Answer Incorrect Answer
    E Compliance procedures Correct Answer Incorrect Answer

    Solution

    A financial audit is an independent examination of an entity's financial statements, whether or not they are profit-oriented, regardless of the size of the entity, by auditors or audit firms to express an opinion regarding the accuracy of the facts and figures contained in the financial statements of the entity and to obtain reasonable assurance that the financial statements are free of material misstatements. Important Points Process of Financial Audit: 1. Planning and creation of the auditing process 2. Examine the internal controls test and the transactions 3. Performance of Analytical Procedures and Testing of Financial Procedures 4. Making an audit report and publishing Hence, it can be concluded that the process of financial audit begins with Planning.

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