QUESTION 5 Please answer the following questions: 1. What is the objective when planning for an audit of financial statements?	[25 MARKS]
(1)

2. Once the audit strategy and plan are formulated, they should not be changed. True or false? Give reasons. (2) 3. What is the overall audit strategy? (2) 4. Does the process of setting an audit strategy assist the auditor in determining the resources necessary for the audit, please discuss. (2) 5. The availability of audit resources should be a major factor in determining the audit strategy and plan. True or false? Give reasons. (2) 6. Do preliminary engagement activities form part of planning? Explain. (1) 7. In what way does adequate planning benefit the audit of financial statements? (3) 8. What is the audit plan and what does it include? (3) 9. Should the audit strategy and plan be discussed with the audit client and why? (2) 10. Explain why it is necessary to set a planning materiality level before conducting risk assessment procedures. (2) Indicate whether the statements below are TRUE / FALSE: 11. Stricter materiality limits set by an auditor will result in more testing. (1) 12. The decision to make use of risk assessments carried out by the clients internal audit department will be made when determining the overall audit strategy. (1) 13. The nature of an audit procedure relates to its purpose and its type. (1) 14. The audit strategy related to the nature, timing and extent of testing. (1) 15. Generally, effective internal control can result in a reduction of substantive testing.(1)