The auditor observes client employees in obtaining an understanding of the internal control in order to:
A)prepare a flowchart.
B)update information contained in the organisation and procedure manuals.
C)corroborate the information obtained during the initial phases of obtaining an understanding of the internal control.
D)determine the extent of compliance with quality control standards.

Question

Quizplus · Accepted Answer

Observing client employees helps the auditor to corroborate the information obtained during the initial phases of obtaining an understanding of the internal control. This is important to ensure that any potential weaknesses or gaps in internal control are identified and properly addressed. While flowcharts and updating information in manuals may also be important tasks for the auditor, observing client employees is specifically aimed at gaining a better understanding of internal control. The extent of compliance with quality control standards is a separate matter entirely.

The Auditor Observes Client Employees in Obtaining an Understanding of the Internal