The auditor's primary purpose for evaluating internal control is to ________.
A)help design of the final audit plan
B)help management design internal control systems
C)help judge how much control is necessary
D)help determine much business risk is acceptable

Question

Quizplus · Accepted Answer

The auditor's primary purpose for evaluating internal control is to help design the final audit plan. The evaluation of internal control is an important step in the audit process because it helps the auditor determine the nature, timing, and extent of auditing procedures necessary for the audit. The auditor evaluates the internal control to obtain information about whether it is operating effectively, and to identify areas where there may be a risk of material misstatement in the financial statements. Based on this evaluation, the auditor can design the final audit plan tailored specifically to the client's internal control system. Evaluating internal control is not intended to help management design internal control systems, judge how much control is necessary, or determine how much business risk is acceptable.

The Auditor's Primary Purpose for Evaluating Internal Control Is to ________