Once controls have been tested, _______.
A)the auditors immediately issue an unqualified opinion on internal control
B)the auditors document their work in a working paper
C)the auditors should request all fees due for this part of the audit, before moving on to the financial statement audit
D)the auditors should document their understanding in a memo addressed to the client's legal counsel

Question

Quizplus · Accepted Answer

Once controls have been tested, the auditors are required to document their work in a working paper which includes the tests performed, the results obtained, and any exceptions noted. This documentation is necessary for review and to support the auditor's opinion on internal control. The auditors do not immediately issue an unqualified opinion on internal control, request all fees due, or document their understanding in a memo addressed to the client's legal counsel.

Once Controls Have Been Tested, _______