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Preliminary engagement activities under SA 300 include:
APerforming client acceptance / continuance procedures
BSending balance confirmations
CDrafting the audit report
DCounting physical inventory
Answer & Solution
Correct answer: A. Performing client acceptance / continuance procedures
1. SA 300 requires client acceptance/continuance, ethical requirements check, and engagement letter at the preliminary stage.
2. Confirmation, reporting and inventory observation are execution-stage procedures.
3. These preliminaries are mandatory before substantive planning begins.
_Source: ICAI BoS CA Final Paper 3, Ch 2 "Audit Planning Strategy and Execution"_
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