For planning purposes, obtaining an understanding of internal controls involves performing procedures to understand the design of policies and procedures and:
A) to evaluate their effectiveness.
B) to determine their impact on the audit strategy.
C) to ascertain whether they are operating as described.
D) to determine whether they have been placed in operation.
E) to assess their efficiency.

Question

Quizplus · Accepted Answer

Understanding internal controls involves determining whether they have been placed in operation, which means verifying that the controls exist and are being used as intended.

For Planning Purposes, Obtaining an Understanding of Internal Controls Involves