Which statement best describes the order of the four audit phases?

• A. Planning, Internal Control, Testing, Reporting
• B. Planning, Testing, Internal Control, Reporting
• C. Internal Control, Planning, Testing, Reporting
• D. Planning, Reporting, Internal Control, Testing

Answer: (A)

The order of audit phases follows a logical flow: plan first, build an understanding of internal controls, then perform testing, and finally report the results. Planning sets the objectives, scope, and approach for the audit. After planning, the auditor evaluates internal controls to understand how they operate and to identify where risks lie, which informs what testing is needed. With that understanding, the auditor carries out testing to gather evidence about assertions and control effectiveness. Only after obtaining sufficient, appropriate evidence is the audit report prepared and issued.

Using this sequence, the option that places Planning, Internal Control, Testing, and then Reporting reflects the proper progression. If testing occurs before evaluating internal controls, or if reporting comes before testing is complete, the work would lack necessary context or evidence.