An auditor should consider two key issues when obtaining an understanding of a client's internal controls. These issues are:
A) the effectiveness and efficiency of the controls.
B) the frequency and effectiveness of the controls.
C) the design and implementation of the controls.
D) the implementation and efficiency of the controls.

Question

Quizplus · Accepted Answer

The two key issues that an auditor should consider when obtaining an understanding of a client's internal controls are the design and implementation of the controls. This includes understanding the control activities and procedures that are in place to mitigate risks and how they have been implemented by the client. The effectiveness and efficiency of the controls and the frequency and effectiveness of their use are important considerations, but these factors are generally assessed later in the audit process after the controls have been understood.

An Auditor Should Consider Two Key Issues When Obtaining an Understanding