For initial audits, additional matters the auditor may consider in the overall audit strategy and

audit plan include the following except

a. Major issues including the application of accounting principles or any auditing and reporting

standards discussed with management.

b. Confirmation of material accounts receivable balance at the end of the year.

c. Planned audit procedure to obtain sufficient appropriate audit evidence regarding opening

balances.

d. Assignment of firm personnel with appropriate levels of capabilities and competence to

respond to anticipated significant risks.

16. In considering the work to be performed by other auditors, the following should be taken into

account except

a. The number of locations.

b. The expected use of audit evidence obtained in prior audits.

c. The involvement of experts.

d. The involvement of other auditors in the audit of components such as subsidiaries,

branches, and divisions.

EXAMPLES OF CHANGES IN

ACCOUNTING POLICIES:

a. Change from FIFO to the Weighted

Average cost formula for inventories

b. Change from the cost model to the fair

value model of measuring investment

property

c. Change from the cost model to the

revaluation model of measuring PPE and

intangible assets.

d. Change in business model for classifying

financial assets

e. Change in the method of recognizing

revenue from long-term construction

contracts

f. Change to a new policy resulting from the

requirement of a new PFRS

g. Change in financial reporting framework,

such as from PFRS for SMEs to full PFRSs.