An auditor's understanding of a client's system of internal control ________.
A)is unrelated to the level of substantive procedures an auditor will conduct
B)will help the auditor to determine areas of risk to direct audit attention and resources to
C)is optional, and should only be conducted for larger clients
D)is a helpful tool to determine the accuracy of account balances and transactions

Question

Quizplus · Accepted Answer

An auditor's understanding of a client's system of internal control will help the auditor to determine areas of risk to direct audit attention and resources to. This is important for planning the audit and determining the appropriate level of substantive procedures to conduct.

An Auditor's Understanding of a Client's System of Internal Control