Response to the following problem:
The following are parts of a typical audit for a company with a fiscal year-end of July 31.
1. Understand internal control and assess control risk.
2. Perform analytical procedures for accounts payable.
3. Confirm accounts payable.
4. Perform tests of controls and substantive tests of transactions for the acquisition and payment and payroll and personnel cycles.
5. Perform other tests of details of balances for accounts payable.
6. Perform tests for review of subsequent events.
7. Accept the client.
8. Issue the audit report.
9. Set acceptable audit risk and decide preliminary judgment about materiality and performance materiality.
Required:
a. Identify the phase of the audit in which each activity occurs.
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.
c. Identify those parts that will frequently be done before July 31.