The third generic step in a financial statement audit could benefit from:
A)Interviews.
B)Flowcharts.
C)Both A and B.
D)Neither A nor B.

Question

Quizplus · Accepted Answer

The third generic step in a financial statement audit involves obtaining an understanding of the client's internal control. This can be achieved through a combination of interviews and flowcharts. Interviews allow the auditor to gather information about the client's control environment, while flowcharts can provide a visual representation of the client's system of internal control. Therefore, both options A and B would be beneficial in this step.

The Third Generic Step in a Financial Statement Audit Could