Which of these requires external auditors to understand a client's system of internal controls before conducting an audit-an understanding aided by documentation?
A)SAS 1
B)AS 2201
C)The Securities and Exchange Act of 1939
D)SOX Act of 2002

Question

Quizplus · Accepted Answer

AS 2201 (Auditing Standard No. 2201) requires auditors to understand and evaluate a client's internal control over financial reporting as part of the audit process. This understanding is crucial for planning the audit and determining the nature, timing, and extent of audit procedures.

Which of These Requires External Auditors to Understand a Client's