An auditor's documentation of the client's system of internal controls ________.
A)should always be written and updated regularly as the auditor gains further understanding
B)is the client's responsibility, and should be provided to the auditor by the client
C)should be jointly drafted by the auditor and the client
D)should be retained in the permanent audit file and never shared with the client

Question

Quizplus · Accepted Answer

An auditor's documentation of the client's system of internal controls should always be written and updated regularly as the auditor gains further understanding. This is essential for the auditor to plan and implement an effective audit and communicate any identified deficiencies or areas for improvement to the client. It is not the client's responsibility to document the internal controls, although they may provide the auditor with relevant documentation. Joint drafting of the documentation may be helpful, but the auditor is ultimately responsible for the accuracy and completeness of the documentation. The documentation should be retained in the audit file to support the auditor's opinion, but may be shared with the client as necessary for communication and resolution of any issues.

An Auditor's Documentation of the Client's System of Internal Controls