The tests of controls and substantive tests of transactions section of the audit program normally includes a descriptive section documenting the understanding obtained about internal control.

Question

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The tests of controls and substantive tests of transactions section of the audit program typically includes a description of the auditor's understanding of the client's internal control, which is obtained during the planning phase of the audit. This description is used to assess the design and operating effectiveness of internal control and to determine the nature, timing, and extent of audit procedures necessary to achieve audit objectives.

The Tests of Controls and Substantive Tests of Transactions Section