1. State the two main phases in planning an audit and outline the main objective(s) of each. 2. When planning an audit, the auditor must consider: (i) the extent of audit procedures, (ii) the timing of audit procedures, (iii) the nature of audit procedures. Briefly explain the meaning of each of these terms. 3. Define 'materiality' and explain briefly the distinction between planning materiality and tolerable error. 4. Explain briefly what is meant by 'performance materiality' and how it relates to planning materiality and tolerable error. 5. Describe briefly the three steps in setting planning materiality. 6. Explain briefly how setting materiality limits at different levels affects planned audit procedures. 7. Explain briefly what is meant by 'the auditor's desired level of audit risk' and how it relates to the auditor's desired level of assurance. 8. Explain briefly the circumstances in which the auditor's desired level of audit risk is likely to be particularly low. 9. Explain briefly how the auditor's assessment of inherent risk and internal control risk affects the planning of substantive procedures. 10. Explain briefly the relationship between materiality limits, audit risk and audit planning.