It is important for the auditor to consider the competence of the audit client's employees because their competence bears directly and importantly upon the:
A) cost/benefit relationship of the system of internal control.
B) timing of the tests to be performed.
C) achievement of the objectives of the system of internal control.
D) comparison of recorded accountability with assets.

Question

Quizplus · Accepted Answer

The competence of the audit client's employees is important to consider because it directly affects the achievement of the objectives of the system of internal control. Employees who are competent in their roles are better able to execute the controls put in place to prevent and detect errors and fraud. On the other hand, if employees are not competent or lack the necessary skills and knowledge, the control environment may be weaker, increasing the risk of errors and fraud going undetected. Ultimately, the effectiveness of the system of internal control depends on the competence of the employees tasked with executing it.

It Is Important for the Auditor to Consider the Competence