It is important for the public accountant to consider the competence of the audit clients' employees because their competence bears directly and importantly upon the
A)cost/benefit relationship of internal controls.
B)achievement of the objectives through effective internal controls.
C)comparison of recorded accountability with assets.
D)timing of the tests to be performed.

Question

Quizplus · Accepted Answer

The competence of the audit clients' employees is important because it affects the effectiveness of internal controls, which ultimately determines whether the objectives of the audit are achieved. The more competent employees are, the more likely they are to properly implement and maintain effective internal controls, which in turn ensures reliable financial reporting.

It Is Important for the Public Accountant to Consider the Competence