When the auditor is engaged to report on the internal control structure:
A) only those areas that the auditor has time to report on will be included in the study.
B) all areas of the structure will be included in the study.
C) only those areas where control risk is low will be included in the study.
D) all areas of the structure will be included in the study unless specifically excluded by agreement.

Question

Quizplus · Accepted Answer

When engaged to report on the internal control structure, the auditor will examine all areas of the structure unless specifically excluded by agreement between the auditor and the client. This is because it is important for the auditor to have a comprehensive understanding of the organization's internal controls, particularly those areas that could have a significant impact on the financial statements. Therefore, the auditor should examine all areas of the internal control structure unless there is a specific agreement with the client to exclude certain areas.

When the Auditor Is Engaged to Report on the Internal