QUESTION 1 [30] 1.1 List four (4) sources from which an auditor may gather information about a prospective client at the preliminary engagement activities stage of the audit process. (4) 1.2 Provide five (5) reasons (other than a lack of skills, resources or time) which may result in a firm not wishing to enter into a relationship with a prospective client. (5) 1.3 If a prospective client will not give the proposed auditor access to internal documents or prior financial statements when the proposed auditor is conducting preliminary engagement activities, the audit should not be accepted. Discuss the statement above. (3) Explain the objective of the planning stage of the audit process. (4) 1.4 1.5 List the three (3) words that define the audit strategy. (2) 1.6 List the three (3) words that define the audit plan. (2) 1.7 Identify five (5) matters which should be dealt with-in an agreement on audit engagement terms (engagement letter). (5) 1.8 The audit strategy and audit plan must be documented. True or false, explain. (3) 1.9 Explain how an auditor might respond to high risk at the financial statement level. (2)