An important outcome of understanding the client's system of internal control is the auditor's ability to ________.
A)guarantee there are no misstatements in the financial statements
B)make recommendations on costs savings related to internal control
C)make observations, draw conclusions and offer recommendations regarding the strengths and weaknesses observed
D)ensure an unqualified audit opinion in regard to the financial statements

Question

Quizplus · Accepted Answer

Understanding the client's system of internal control allows the auditor to assess the strengths and weaknesses of the system, make observations, draw conclusions, and offer recommendations for improvement. The auditor cannot guarantee there are no misstatements in the financial statements and cannot ensure an unqualified audit opinion without performing other audit procedures. While cost savings may be a benefit of a strong internal control system, it is not the primary outcome of understanding the system.

An Important Outcome of Understanding the Client's System of Internal