The primary purpose of obtaining an understanding of the company's internal controls in the financial statement audit is ________.
A)to help the auditors develop the audit program
B)to make suggestions to management to improve internal controls
C)to obtain direct sufficient appropriate audit evidence to afford a reasonable basis for an opinion on the financial statements
D)to determine whether the company has changed any accounting principles

Question

Quizplus · Accepted Answer

Understanding internal controls helps auditors assess the risk of material misstatement and plan the nature, timing, and extent of further audit procedures, which is essential for developing the audit program.

The Primary Purpose of Obtaining an Understanding of the Company's