When performing an integrated audit (to issue an opinion on the financial statements and an opinion on internal controls over financial reporting), _______.
A)the auditor uses a top-down approach to determine which controls to select
B)the auditor uses a bottom-up approach to determine which controls to select
C)the auditor should be careful to issue the same audit opinion for both the financial statements and internal control
D)the auditor should be careful to issue different audit opinions for the financial statements and internal control

Question

Quizplus · Accepted Answer

In an integrated audit, the auditor uses a top-down approach to determine which controls to select. This involves starting from an understanding of the organization's financial reporting objectives and then testing the controls that are relevant to achieving those objectives. The auditor should issue two separate opinions for the financial statements and internal control, with the latter opinion stating whether the controls are effective in ensuring accurate financial reporting.

When Performing an Integrated Audit (To Issue an Opinion on the Financial