When the auditor is engaged to report on the internal controls:
A) only those areas that the auditor has time to report on will be included in the study.
B) all areas of the structure will be included in the study.
C) all areas of the structure will be included in the study unless specifically excluded by agreement.
D) only those areas where control risk is low will be included in the study.

Question

Quizplus · Accepted Answer

When engaged to report on internal controls, the auditor is expected to review and report on all areas of the structure unless specifically excluded by agreement. The agreement may be with the client or through professional standards requiring certain matters not to be addressed. Therefore, option C is the correct answer. Options A, B, and D are incorrect as they do not represent the auditor's responsibility in reporting on internal controls.

When the Auditor Is Engaged to Report on the Internal